Correlation Between Dynex Capital and Invesco Real
Can any of the company-specific risk be diversified away by investing in both Dynex Capital and Invesco Real 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 Invesco Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynex Capital and Invesco Real Estate, you can compare the effects of market volatilities on Dynex Capital and Invesco Real 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 Invesco Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Invesco Real.
Diversification Opportunities for Dynex Capital and Invesco Real
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dynex and INVESCO is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Invesco Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Real Estate 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 Invesco Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Real Estate has no effect on the direction of Dynex Capital i.e., Dynex Capital and Invesco Real go up and down completely randomly.
Pair Corralation between Dynex Capital and Invesco Real
Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 1.35 times more return on investment than Invesco Real. However, Dynex Capital is 1.35 times more volatile than Invesco Real Estate. It trades about 0.04 of its potential returns per unit of risk. Invesco Real Estate is currently generating about 0.03 per unit of risk. If you would invest 1,012 in Dynex Capital on September 4, 2024 and sell it today you would earn a total of 233.00 from holding Dynex Capital or generate 23.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynex Capital vs. Invesco Real Estate
Performance |
| Timeline |
| Dynex Capital |
| Invesco Real Estate |
Dynex Capital and Invesco Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynex Capital and Invesco Real
The main advantage of trading using opposite Dynex Capital and Invesco Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital position performs unexpectedly, Invesco Real 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 Invesco Real will offset losses from the drop in Invesco Real'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 |
| Invesco Real vs. Realty Income | Invesco Real vs. Dynex Capital | Invesco Real vs. First Industrial Realty | Invesco Real vs. Healthcare Realty Trust |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |