Correlation Between Arlington Asset and Ventas

By analyzing existing cross correlation between Arlington Asset Investment and Ventas Inc you can compare the effects of market volatilities on Arlington Asset and Ventas 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 Ventas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arlington Asset and Ventas.

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Can any of the company-specific risk be diversified away by investing in both Arlington Asset and Ventas at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Arlington Asset and Ventas into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Arlington Asset and Ventas

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Almost no diversification

The 3 months correlation between Arlington and Ventas is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Arlington Asset Investment Cor and Ventas Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ventas Inc 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 are associated (or correlated) with Ventas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ventas Inc has no effect on the direction of Arlington Asset i.e. Arlington Asset and Ventas go up and down completely randomly.

Pair Corralation between Arlington Asset and Ventas

Allowing for the 30-days total investment horizon, Arlington Asset Investment is expected to under-perform the Ventas. In addition to that, Arlington Asset is 1.0 times more volatile than Ventas Inc. It trades about -0.07 of its total potential returns per unit of risk. Ventas Inc is currently generating about -0.02 per unit of volatility. If you would invest  6,305  in Ventas Inc on April 24, 2020 and sell it today you would lose (2,934)  from holding Ventas Inc or give up 46.53% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
ValuesDaily Returns

Arlington Asset Investment Cor  vs.  Ventas Inc

 Performance (%) 
Arlington Asset Inve 

Arlington Asset Risk-Adjusted Performance

Over the last 30 days Arlington Asset Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in June 2020. The prevalent disturbance may also be a sign of long-run up-swing for the entity stockholder.
Ventas Inc 

Ventas Risk-Adjusted Performance

Over the last 30 days Ventas Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of unfluctuating performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in June 2020. The latest agitation may also be a sign of long running up-swing for enterprise management.

Arlington Asset and Ventas Volatility Contrast

 Predicted Return Density 
Check out your portfolio center. Please also try Global Correlations module to find global opportunities by holding instruments from different markets.

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