Correlation Between Arlington Asset and Associated Capital
Can any of the company-specific risk be diversified away by investing in both Arlington Asset and Associated Capital 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 Arlington Asset and Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arlington Asset Investment and Associated Capital Group, you can compare the effects of market volatilities on Arlington Asset and Associated Capital 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 Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arlington Asset and Associated Capital.
Diversification Opportunities for Arlington Asset and Associated Capital
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arlington and Associated is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Arlington Asset Investment and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital 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 Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Arlington Asset i.e., Arlington Asset and Associated Capital go up and down completely randomly.
Pair Corralation between Arlington Asset and Associated Capital
If you would invest 484.00 in Arlington Asset Investment on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Arlington Asset Investment or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 2.33% |
Values | Daily Returns |
Arlington Asset Investment vs. Associated Capital Group
Performance |
Timeline |
Arlington Asset Inve |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Associated Capital |
Arlington Asset and Associated Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arlington Asset and Associated Capital
The main advantage of trading using opposite Arlington Asset and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arlington Asset position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.Arlington Asset vs. ACRES Commercial Realty | Arlington Asset vs. ACRES Commercial Realty | Arlington Asset vs. Cherry Hill Mortgage | Arlington Asset vs. Nexpoint Real Estate |
Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. AssetMark Financial Holdings | Associated Capital vs. Blackrock Muni Intermediate |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |