Correlation Between Chimera Investment and Chimera Investment
Can any of the company-specific risk be diversified away by investing in both Chimera Investment and Chimera Investment 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 Chimera Investment and Chimera Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chimera Investment and Chimera Investment, you can compare the effects of market volatilities on Chimera Investment and Chimera Investment 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 Chimera Investment with a short position of Chimera Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chimera Investment and Chimera Investment.
Diversification Opportunities for Chimera Investment and Chimera Investment
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chimera and Chimera is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chimera Investment and Chimera Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimera Investment and Chimera Investment 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 Chimera Investment are associated (or correlated) with Chimera Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimera Investment has no effect on the direction of Chimera Investment i.e., Chimera Investment and Chimera Investment go up and down completely randomly.
Pair Corralation between Chimera Investment and Chimera Investment
Assuming the 90 days trading horizon Chimera Investment is expected to generate 1.7 times less return on investment than Chimera Investment. But when comparing it to its historical volatility, Chimera Investment is 2.15 times less risky than Chimera Investment. It trades about 0.1 of its potential returns per unit of risk. Chimera Investment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,257 in Chimera Investment on August 23, 2024 and sell it today you would earn a total of 83.00 from holding Chimera Investment or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chimera Investment vs. Chimera Investment
Performance |
| Timeline |
| Chimera Investment |
| Chimera Investment |
Chimera Investment and Chimera Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chimera Investment and Chimera Investment
The main advantage of trading using opposite Chimera Investment and Chimera Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chimera Investment position performs unexpectedly, Chimera Investment 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 Chimera Investment will offset losses from the drop in Chimera Investment's long position.| Chimera Investment vs. AGNC Investment Corp | Chimera Investment vs. Annaly Capital Management | Chimera Investment vs. AGNC Investment Corp | Chimera Investment vs. New York Mortgage |
| Chimera Investment vs. AGNC Investment Corp | Chimera Investment vs. Annaly Capital Management | Chimera Investment vs. AGNC Investment Corp | Chimera Investment vs. New York Mortgage |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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