Correlation Between Ecc Cap and MFA Financial
Can any of the company-specific risk be diversified away by investing in both Ecc Cap and MFA Financial 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 Ecc Cap and MFA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecc Cap Corp and MFA Financial, you can compare the effects of market volatilities on Ecc Cap and MFA Financial 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 Ecc Cap with a short position of MFA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecc Cap and MFA Financial.
Diversification Opportunities for Ecc Cap and MFA Financial
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ecc and MFA is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ecc Cap Corp and MFA Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA Financial and Ecc Cap 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 Ecc Cap Corp are associated (or correlated) with MFA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA Financial has no effect on the direction of Ecc Cap i.e., Ecc Cap and MFA Financial go up and down completely randomly.
Pair Corralation between Ecc Cap and MFA Financial
If you would invest 2,337 in MFA Financial on August 30, 2024 and sell it today you would earn a total of 127.00 from holding MFA Financial or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Ecc Cap Corp vs. MFA Financial
Performance |
| Timeline |
| Ecc Cap Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MFA Financial |
Ecc Cap and MFA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecc Cap and MFA Financial
The main advantage of trading using opposite Ecc Cap and MFA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecc Cap position performs unexpectedly, MFA Financial 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 MFA Financial will offset losses from the drop in MFA Financial's long position.| Ecc Cap vs. Ready Capital Corp | Ecc Cap vs. Ellington Residential Mortgage | Ecc Cap vs. Ellington Financial | Ecc Cap vs. Dynex Capital |
| MFA Financial vs. AG Mortgage Investment | MFA Financial vs. AG Mortgage Investment | MFA Financial vs. Invesco Mortgage Capital | MFA Financial vs. Invesco Mortgage Capital |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |