Correlation Between NYSE Composite and MFA Financial
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and MFA 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 NYSE Composite and MFA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and MFA Financial SR, you can compare the effects of market volatilities on NYSE Composite and MFA 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 NYSE Composite with a short position of MFA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and MFA Financial.
Diversification Opportunities for NYSE Composite and MFA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and MFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and MFA Financial SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA Financial SR and NYSE Composite 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 NYSE Composite are associated (or correlated) with MFA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA Financial SR has no effect on the direction of NYSE Composite i.e., NYSE Composite and MFA Financial go up and down completely randomly.
Pair Corralation between NYSE Composite and MFA Financial
If you would invest (100.00) in MFA Financial SR on September 19, 2024 and sell it today you would earn a total of 100.00 from holding MFA Financial SR or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NYSE Composite vs. MFA Financial SR
Performance |
| Timeline |
NYSE Composite and MFA Financial Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
MFA Financial SR
Pair trading matchups for MFA Financial
Pair Trading with NYSE Composite and MFA Financial
The main advantage of trading using opposite NYSE Composite and MFA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, MFA 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 MFA Financial will offset losses from the drop in MFA Financial's long position.| NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Cracker Barrel Old | NYSE Composite vs. Shake Shack | NYSE Composite vs. Integral Ad Science |
| MFA Financial vs. Western Copper and | MFA Financial vs. Kura Sushi USA | MFA Financial vs. Parker Hannifin | MFA Financial vs. Shake Shack |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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