Correlation Between Dynex Capital and Peakstone Realty
Can any of the company-specific risk be diversified away by investing in both Dynex Capital and Peakstone 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 Peakstone 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 Peakstone Realty Trust, you can compare the effects of market volatilities on Dynex Capital and Peakstone 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 Peakstone Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Peakstone Realty.
Diversification Opportunities for Dynex Capital and Peakstone Realty
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dynex and Peakstone is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Peakstone Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peakstone Realty Trust 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 Peakstone Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peakstone Realty Trust has no effect on the direction of Dynex Capital i.e., Dynex Capital and Peakstone Realty go up and down completely randomly.
Pair Corralation between Dynex Capital and Peakstone Realty
Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 0.42 times more return on investment than Peakstone Realty. However, Dynex Capital is 2.37 times less risky than Peakstone Realty. It trades about 0.44 of its potential returns per unit of risk. Peakstone Realty Trust is currently generating about 0.04 per unit of risk. If you would invest 1,235 in Dynex Capital on November 9, 2024 and sell it today you would earn a total of 106.00 from holding Dynex Capital or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynex Capital vs. Peakstone Realty Trust
Performance |
| Timeline |
| Dynex Capital |
| Peakstone Realty Trust |
Dynex Capital and Peakstone Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynex Capital and Peakstone Realty
The main advantage of trading using opposite Dynex Capital and Peakstone Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital position performs unexpectedly, Peakstone 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 Peakstone Realty will offset losses from the drop in Peakstone 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 |
| Peakstone Realty vs. Global Net Lease, | Peakstone Realty vs. Gladstone Commercial | Peakstone Realty vs. CTO Realty Growth | Peakstone Realty vs. W P Carey |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |