Correlation Between Dynex Capital and Broadmark Realty
Can any of the company-specific risk be diversified away by investing in both Dynex Capital and Broadmark Realty 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 Dynex Capital and Broadmark Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynex Capital and Broadmark Realty Capital, you can compare the effects of market volatilities on Dynex Capital and Broadmark Realty 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 Dynex Capital with a short position of Broadmark Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Broadmark Realty.
Diversification Opportunities for Dynex Capital and Broadmark Realty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dynex and Broadmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Broadmark Realty Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadmark Realty Capital and Dynex Capital 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 Dynex Capital are associated (or correlated) with Broadmark Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadmark Realty Capital has no effect on the direction of Dynex Capital i.e., Dynex Capital and Broadmark Realty go up and down completely randomly.
Pair Corralation between Dynex Capital and Broadmark Realty
If you would invest 1,260 in Dynex Capital on November 18, 2024 and sell it today you would earn a total of 119.00 from holding Dynex Capital or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Dynex Capital vs. Broadmark Realty Capital
Performance |
| Timeline |
| Dynex Capital |
| Broadmark Realty Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Dynex Capital and Broadmark Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynex Capital and Broadmark Realty
The main advantage of trading using opposite Dynex Capital and Broadmark Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital position performs unexpectedly, Broadmark Realty 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 Broadmark Realty will offset losses from the drop in Broadmark Realty's long position.| Dynex Capital vs. Ellington Residential Mortgage | Dynex Capital vs. Orchid Island Capital | Dynex Capital vs. ARMOUR Residential REIT | Dynex Capital vs. Ellington Financial |
| Broadmark Realty vs. Two Harbors Investments | Broadmark Realty vs. Ares Commercial Real | Broadmark Realty vs. Apollo Commercial Real | Broadmark Realty vs. Ellington Financial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |