Correlation Analysis Between Arlington Asset and Essent Group

This module allows you to analyze existing cross correlation between Arlington Asset Investment Corp and Essent Group Ltd. You can compare the effects of market volatilities on Arlington Asset and Essent Group 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 Arlington Asset with a short position of Essent Group. See also your portfolio center. Please also check ongoing floating volatility patterns of Arlington Asset and Essent Group.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Arlington Asset Inve  
00

Risk-Adjusted Performance

Over the last 30 days Arlington Asset Investment Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in November 2019. The prevalent disturbance may also be a sign of long-run up-swing for the entity stockholder.
Essent Group  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Essent Group Ltd are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unchanging essential indicators, Essent Group is not utilizing all of its potentials. The prevalent stock price uproar, may contribute to short horizon losses for the leadership.

Arlington Asset and Essent Group Volatility Contrast

 Predicted Return Density 
      Returns 

Arlington Asset Investment Cor  vs.  Essent Group Ltd

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Arlington Asset Investment Corp is expected to under-perform the Essent Group. In addition to that, Arlington Asset is 1.07 times more volatile than Essent Group Ltd. It trades about -0.15 of its total potential returns per unit of risk. Essent Group Ltd is currently generating about 0.03 per unit of volatility. If you would invest  4,782  in Essent Group Ltd on September 14, 2019 and sell it today you would earn a total of  102.00  from holding Essent Group Ltd or generate 2.13% return on investment over 30 days.

Pair Corralation between Arlington Asset and Essent Group

-0.38
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Arlington Asset and Essent Group

Arlington Asset Investment Cor diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Arlington Asset Investment Cor and Essent Group Ltd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Essent Group and Arlington Asset 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 Arlington Asset Investment Corp are associated (or correlated) with Essent Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essent Group has no effect on the direction of Arlington Asset i.e. Arlington Asset and Essent Group go up and down completely randomly.
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