Correlation Between Ecc Cap and Annaly Capital
Can any of the company-specific risk be diversified away by investing in both Ecc Cap and Annaly Capital 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 Annaly Capital 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 Annaly Capital Management, you can compare the effects of market volatilities on Ecc Cap and Annaly Capital 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 Annaly Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecc Cap and Annaly Capital.
Diversification Opportunities for Ecc Cap and Annaly Capital
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ecc and Annaly is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ecc Cap Corp and Annaly Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annaly Capital Management 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 Annaly Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annaly Capital Management has no effect on the direction of Ecc Cap i.e., Ecc Cap and Annaly Capital go up and down completely randomly.
Pair Corralation between Ecc Cap and Annaly Capital
If you would invest 2,460 in Annaly Capital Management on August 31, 2024 and sell it today you would earn a total of 121.00 from holding Annaly Capital Management or generate 4.92% 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. Annaly Capital Management
Performance |
| Timeline |
| Ecc Cap Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Annaly Capital Management |
Ecc Cap and Annaly Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecc Cap and Annaly Capital
The main advantage of trading using opposite Ecc Cap and Annaly Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecc Cap position performs unexpectedly, Annaly Capital 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 Annaly Capital will offset losses from the drop in Annaly Capital'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 |
| Annaly Capital vs. Annaly Capital Management | Annaly Capital vs. Annaly Capital Management | Annaly Capital vs. AGNC Investment Corp | Annaly Capital vs. AGNC Investment Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |