Correlation Between Maxus Realty and Sachem Capital
Can any of the company-specific risk be diversified away by investing in both Maxus Realty and Sachem 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 Sachem 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 Sachem Capital Corp, you can compare the effects of market volatilities on Maxus Realty and Sachem 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 Sachem Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxus Realty and Sachem Capital.
Diversification Opportunities for Maxus Realty and Sachem Capital
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maxus and Sachem is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Maxus Realty Trust and Sachem Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sachem Capital Corp 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 Sachem Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sachem Capital Corp has no effect on the direction of Maxus Realty i.e., Maxus Realty and Sachem Capital go up and down completely randomly.
Pair Corralation between Maxus Realty and Sachem Capital
If you would invest 12,000 in Maxus Realty Trust on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Maxus Realty Trust or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Maxus Realty Trust vs. Sachem Capital Corp
Performance |
| Timeline |
| Maxus Realty Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sachem Capital Corp |
Maxus Realty and Sachem Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxus Realty and Sachem Capital
The main advantage of trading using opposite Maxus Realty and Sachem Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxus Realty position performs unexpectedly, Sachem 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 Sachem Capital will offset losses from the drop in Sachem Capital's long position.The idea behind Maxus Realty Trust and Sachem Capital Corp 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.| Sachem Capital vs. Ready Capital | Sachem Capital vs. ARMOUR Residential REIT | Sachem Capital vs. PennyMac Mortgage Investment | Sachem Capital vs. MFA Financial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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