Correlation Between Maxus Realty and Ellington Financial
Can any of the company-specific risk be diversified away by investing in both Maxus Realty and Ellington 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 Maxus Realty and Ellington Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxus Realty Trust and Ellington Financial, you can compare the effects of market volatilities on Maxus Realty and Ellington 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 Maxus Realty with a short position of Ellington Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxus Realty and Ellington Financial.
Diversification Opportunities for Maxus Realty and Ellington Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maxus and Ellington is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Maxus Realty Trust and Ellington Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellington Financial and Maxus Realty 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 Maxus Realty Trust are associated (or correlated) with Ellington Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellington Financial has no effect on the direction of Maxus Realty i.e., Maxus Realty and Ellington Financial go up and down completely randomly.
Pair Corralation between Maxus Realty and Ellington Financial
If you would invest 2,556 in Ellington Financial on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Ellington Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxus Realty Trust vs. Ellington Financial
Performance |
| Timeline |
| Maxus Realty Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ellington Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maxus Realty and Ellington Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxus Realty and Ellington Financial
The main advantage of trading using opposite Maxus Realty and Ellington Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxus Realty position performs unexpectedly, Ellington 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 Ellington Financial will offset losses from the drop in Ellington Financial's long position.| Maxus Realty vs. Saul Centers | Maxus Realty vs. One Liberty Properties | Maxus Realty vs. Rithm Property Trust | Maxus Realty vs. Power REIT |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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