Correlation Between Great Ajax and Chicago Atlantic
Can any of the company-specific risk be diversified away by investing in both Great Ajax and Chicago Atlantic 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 Great Ajax and Chicago Atlantic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Ajax Corp and Chicago Atlantic Real, you can compare the effects of market volatilities on Great Ajax and Chicago Atlantic 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 Great Ajax with a short position of Chicago Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Ajax and Chicago Atlantic.
Diversification Opportunities for Great Ajax and Chicago Atlantic
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Great and Chicago is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Great Ajax Corp and Chicago Atlantic Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicago Atlantic Real and Great Ajax 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 Great Ajax Corp are associated (or correlated) with Chicago Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicago Atlantic Real has no effect on the direction of Great Ajax i.e., Great Ajax and Chicago Atlantic go up and down completely randomly.
Pair Corralation between Great Ajax and Chicago Atlantic
Considering the 90-day investment horizon Great Ajax Corp is expected to under-perform the Chicago Atlantic. In addition to that, Great Ajax is 2.61 times more volatile than Chicago Atlantic Real. It trades about 0.0 of its total potential returns per unit of risk. Chicago Atlantic Real is currently generating about 0.08 per unit of volatility. If you would invest 1,454 in Chicago Atlantic Real on August 24, 2024 and sell it today you would earn a total of 143.00 from holding Chicago Atlantic Real or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Ajax Corp vs. Chicago Atlantic Real
Performance |
| Timeline |
| Great Ajax Corp |
| Chicago Atlantic Real |
Great Ajax and Chicago Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Ajax and Chicago Atlantic
The main advantage of trading using opposite Great Ajax and Chicago Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Ajax position performs unexpectedly, Chicago Atlantic 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 Chicago Atlantic will offset losses from the drop in Chicago Atlantic's long position.| Great Ajax vs. Ellington Financial | Great Ajax vs. Dynex Capital | Great Ajax vs. Ares Commercial Real | Great Ajax vs. Cherry Hill Mortgage |
| Chicago Atlantic vs. KKR Real Estate | Chicago Atlantic vs. Ellington Residential Mortgage | Chicago Atlantic vs. Claros Mortgage Trust | Chicago Atlantic vs. Great Ajax Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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