Correlation Between New York and AJX Old
Can any of the company-specific risk be diversified away by investing in both New York and AJX Old 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 New York and AJX Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Mortgage and AJX Old, you can compare the effects of market volatilities on New York and AJX Old 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 New York with a short position of AJX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and AJX Old.
Diversification Opportunities for New York and AJX Old
Pay attention - limited upside
The 3 months correlation between New and AJX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New York Mortgage and AJX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJX Old and New York 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 New York Mortgage are associated (or correlated) with AJX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJX Old has no effect on the direction of New York i.e., New York and AJX Old go up and down completely randomly.
Pair Corralation between New York and AJX Old
If you would invest (100.00) in AJX Old on January 7, 2025 and sell it today you would earn a total of 100.00 from holding AJX Old 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 |
New York Mortgage vs. AJX Old
Performance |
| Timeline |
| New York Mortgage |
| AJX Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
New York and AJX Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and AJX Old
The main advantage of trading using opposite New York and AJX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, AJX Old 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 AJX Old will offset losses from the drop in AJX Old's long position.| New York vs. Two Harbors Investments | New York vs. ARMOUR Residential REIT | New York vs. Annaly Capital Management | New York vs. AGNC Investment Corp |
| AJX Old vs. Ellington Financial | AJX Old vs. Dynex Capital | AJX Old vs. Ares Commercial Real | AJX Old 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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