Correlation Analysis Between Mid America and Capstead Mortgage

This module allows you to analyze existing cross correlation between Mid America Apartment Communiti and Capstead Mortgage Corporation. You can compare the effects of market volatilities on Mid America and Capstead Mortgage 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 Capstead Mortgage. See also your portfolio center. Please also check ongoing floating volatility patterns of Mid America and Capstead Mortgage.
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 conflicting basic indicators, Mid America may actually be approaching a critical reversion point that can send shares even higher in October 2019.
Capstead Mortgage  
00

Risk-Adjusted Performance

Over the last 30 days Capstead Mortgage Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Allthough latest weak performance, the Stock's forward indicators remain persistent and the existing mess on Wall Street may also be a sign of long standing gains for the corporation partners.

Mid America and Capstead Mortgage Volatility Contrast

 Predicted Return Density 
      Returns 

Mid America Apartment Communit  vs.  Capstead Mortgage Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Mid America Apartment Communiti is expected to generate 0.74 times more return on investment than Capstead Mortgage. However, Mid America Apartment Communiti is 1.35 times less risky than Capstead Mortgage. It trades about 0.14 of its potential returns per unit of risk. Capstead Mortgage Corporation is currently generating about -0.09 per unit of risk. If you would invest  11,788  in Mid America Apartment Communiti on August 21, 2019 and sell it today you would earn a total of  1,080  from holding Mid America Apartment Communiti or generate 9.16% return on investment over 30 days.

Pair Corralation between Mid America and Capstead Mortgage

-0.76
Time Period3 Months [change]
DirectionNegative 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Mid America and Capstead Mortgage

Mid America Apartment Communit diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Mid America Apartment Communit and Capstead Mortgage Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Capstead Mortgage 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 Capstead Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstead Mortgage has no effect on the direction of Mid America i.e. Mid America and Capstead Mortgage go up and down completely randomly.
See also your portfolio center. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.


 
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