Correlation Analysis Between Mid America and ARMOUR Residential

This module allows you to analyze existing cross correlation between Mid America Apartment Communiti and ARMOUR Residential REIT. You can compare the effects of market volatilities on Mid America and ARMOUR Residential 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 Mid America with a short position of ARMOUR Residential. See also your portfolio center. Please also check ongoing floating volatility patterns of Mid America and ARMOUR Residential.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Mid America Apartment  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Mid America Apartment Communiti are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Despite somewhat uncertain basic indicators, Mid America may actually be approaching a critical reversion point that can send shares even higher in October 2019.
ARMOUR Residential REIT  
00

Risk-Adjusted Performance

Over the last 30 days ARMOUR Residential REIT has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, ARMOUR Residential is not utilizing all of its potentials. The late stock price agitation, may contribute to short term losses for the management.

Mid America and ARMOUR Residential Volatility Contrast

 Predicted Return Density 
      Returns 

Mid America Apartment Communit  vs.  ARMOUR Residential REIT Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Mid America Apartment Communiti is expected to generate 0.97 times more return on investment than ARMOUR Residential. However, Mid America Apartment Communiti is 1.04 times less risky than ARMOUR Residential. It trades about 0.14 of its potential returns per unit of risk. ARMOUR Residential REIT is currently generating about -0.06 per unit of risk. If you would invest  11,903  in Mid America Apartment Communiti on August 19, 2019 and sell it today you would earn a total of  1,064  from holding Mid America Apartment Communiti or generate 8.94% return on investment over 30 days.

Pair Corralation between Mid America and ARMOUR Residential

0.85
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Mid America and ARMOUR Residential

Mid America Apartment Communit diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Mid America Apartment Communit and ARMOUR Residential REIT Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ARMOUR Residential REIT and Mid America 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 Mid America Apartment Communiti are associated (or correlated) with ARMOUR Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARMOUR Residential REIT has no effect on the direction of Mid America i.e. Mid America and ARMOUR Residential go up and down completely randomly.
See also your portfolio center. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.


 
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