Correlation Between Maxus Realty and Annaly Capital
Can any of the company-specific risk be diversified away by investing in both Maxus Realty 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 Maxus Realty and Annaly Capital 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 Annaly Capital Management, you can compare the effects of market volatilities on Maxus Realty 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 Maxus Realty with a short position of Annaly Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxus Realty and Annaly Capital.
Diversification Opportunities for Maxus Realty and Annaly Capital
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maxus and Annaly is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Maxus Realty Trust 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 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 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 Maxus Realty i.e., Maxus Realty and Annaly Capital go up and down completely randomly.
Pair Corralation between Maxus Realty and Annaly Capital
If you would invest 2,440 in Annaly Capital Management on August 24, 2024 and sell it today you would earn a total of 153.00 from holding Annaly Capital Management or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Maxus Realty Trust vs. Annaly Capital Management
Performance |
| Timeline |
| Maxus Realty Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Annaly Capital Management |
Maxus Realty and Annaly Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxus Realty and Annaly Capital
The main advantage of trading using opposite Maxus Realty and Annaly Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxus Realty 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.The idea behind Maxus Realty Trust and Annaly Capital Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Annaly Capital vs. ACRES Commercial Realty | Annaly Capital vs. Chimera Investment | Annaly Capital vs. Cherry Hill Mortgage | Annaly Capital vs. Cherry Hill Mortgage |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| 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 | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |