Correlation Between AJX Old and MFA Financial
Can any of the company-specific risk be diversified away by investing in both AJX Old and MFA Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AJX Old and MFA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AJX Old and MFA Financial, you can compare the effects of market volatilities on AJX Old and MFA Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AJX Old with a short position of MFA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AJX Old and MFA Financial.
Diversification Opportunities for AJX Old and MFA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AJX and MFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AJX Old and MFA Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA Financial and AJX Old is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AJX Old are associated (or correlated) with MFA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA Financial has no effect on the direction of AJX Old i.e., AJX Old and MFA Financial go up and down completely randomly.
Pair Corralation between AJX Old and MFA Financial
If you would invest 790.00 in MFA Financial on January 6, 2025 and sell it today you would earn a total of 168.00 from holding MFA Financial or generate 21.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AJX Old vs. MFA Financial
Performance |
| Timeline |
| AJX Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| MFA Financial |
AJX Old and MFA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AJX Old and MFA Financial
The main advantage of trading using opposite AJX Old and MFA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AJX Old position performs unexpectedly, MFA Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MFA Financial will offset losses from the drop in MFA Financial's long position.| AJX Old vs. Ellington Financial | AJX Old vs. Dynex Capital | AJX Old vs. Ares Commercial Real | AJX Old vs. Cherry Hill Mortgage |
| MFA Financial vs. Chimera Investment | MFA Financial vs. ARMOUR Residential REIT | MFA Financial vs. Orchid Island Capital | MFA Financial vs. Invesco Mortgage Capital |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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