Correlation Between Ecc Cap and New York
Can any of the company-specific risk be diversified away by investing in both Ecc Cap and New York 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 New York 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 New York Mortgage, you can compare the effects of market volatilities on Ecc Cap and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecc Cap and New York.
Diversification Opportunities for Ecc Cap and New York
Excellent diversification
The 3 months correlation between Ecc and New is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ecc Cap Corp and New York Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Mortgage 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Mortgage has no effect on the direction of Ecc Cap i.e., Ecc Cap and New York go up and down completely randomly.
Pair Corralation between Ecc Cap and New York
Given the investment horizon of 90 days Ecc Cap Corp is expected to under-perform the New York. In addition to that, Ecc Cap is 4.73 times more volatile than New York Mortgage. It trades about -0.15 of its total potential returns per unit of risk. New York Mortgage is currently generating about 0.07 per unit of volatility. If you would invest 1,604 in New York Mortgage on August 27, 2024 and sell it today you would earn a total of 641.00 from holding New York Mortgage or generate 39.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 9.07% |
| Values | Daily Returns |
Ecc Cap Corp vs. New York Mortgage
Performance |
| Timeline |
| Ecc Cap Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| New York Mortgage |
Ecc Cap and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecc Cap and New York
The main advantage of trading using opposite Ecc Cap and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecc Cap position performs unexpectedly, New York 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 New York will offset losses from the drop in New York'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 |
| New York vs. Annaly Capital Management | New York vs. AGNC Investment Corp | New York vs. Invesco Mortgage Capital | New York 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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