Correlation Between Annaly Capital and Ecc Cap
Can any of the company-specific risk be diversified away by investing in both Annaly Capital and Ecc Cap 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 Annaly Capital and Ecc Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Annaly Capital Management and Ecc Cap Corp, you can compare the effects of market volatilities on Annaly Capital and Ecc Cap 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 Annaly Capital with a short position of Ecc Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Annaly Capital and Ecc Cap.
Diversification Opportunities for Annaly Capital and Ecc Cap
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Annaly and Ecc is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Annaly Capital Management and Ecc Cap Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecc Cap Corp and Annaly Capital 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 Annaly Capital Management are associated (or correlated) with Ecc Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecc Cap Corp has no effect on the direction of Annaly Capital i.e., Annaly Capital and Ecc Cap go up and down completely randomly.
Pair Corralation between Annaly Capital and Ecc Cap
If you would invest 2,569 in Annaly Capital Management on August 30, 2024 and sell it today you would earn a total of 25.00 from holding Annaly Capital Management or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Annaly Capital Management vs. Ecc Cap Corp
Performance |
| Timeline |
| Annaly Capital Management |
| Ecc Cap Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Annaly Capital and Ecc Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Annaly Capital and Ecc Cap
The main advantage of trading using opposite Annaly Capital and Ecc Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Annaly Capital position performs unexpectedly, Ecc Cap 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 Ecc Cap will offset losses from the drop in Ecc Cap's long position.| Annaly Capital vs. AG Mortgage Investment | Annaly Capital vs. AG Mortgage Investment | Annaly Capital vs. Invesco Mortgage Capital | Annaly Capital vs. Invesco Mortgage Capital |
| Ecc Cap vs. Ready Capital Corp | Ecc Cap vs. Ellington Residential Mortgage | Ecc Cap vs. Ellington Financial | Ecc Cap vs. Dynex 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |