Correlation Between AG Mortgage and Creative Media
Can any of the company-specific risk be diversified away by investing in both AG Mortgage and Creative Media 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 AG Mortgage and Creative Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Mortgage Investment and Creative Media Community, you can compare the effects of market volatilities on AG Mortgage and Creative Media 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 AG Mortgage with a short position of Creative Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Creative Media.
Diversification Opportunities for AG Mortgage and Creative Media
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MITT-PC and Creative is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Creative Media Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Media Community and AG Mortgage 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 AG Mortgage Investment are associated (or correlated) with Creative Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Media Community has no effect on the direction of AG Mortgage i.e., AG Mortgage and Creative Media go up and down completely randomly.
Pair Corralation between AG Mortgage and Creative Media
Assuming the 90 days trading horizon AG Mortgage Investment is expected to generate 0.08 times more return on investment than Creative Media. However, AG Mortgage Investment is 12.99 times less risky than Creative Media. It trades about 0.25 of its potential returns per unit of risk. Creative Media Community is currently generating about -0.15 per unit of risk. If you would invest 1,926 in AG Mortgage Investment on August 26, 2024 and sell it today you would earn a total of 602.00 from holding AG Mortgage Investment or generate 31.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Mortgage Investment vs. Creative Media Community
Performance |
| Timeline |
| AG Mortgage Investment |
| Creative Media Community |
AG Mortgage and Creative Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Mortgage and Creative Media
The main advantage of trading using opposite AG Mortgage and Creative Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage position performs unexpectedly, Creative Media 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 Creative Media will offset losses from the drop in Creative Media's long position.| AG Mortgage vs. Annaly Capital Management | AG Mortgage vs. AGNC Investment Corp | AG Mortgage vs. Invesco Mortgage Capital | AG Mortgage vs. Invesco Mortgage Capital |
| Creative Media vs. Cousins Properties Incorporated | Creative Media vs. Highwoods Properties | Creative Media vs. Douglas Emmett | Creative Media vs. Equity Commonwealth |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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