ARMOUR Residential Correlations

ARR Stock

USD 18.54 0.01 0.05%

The current 90-days correlation between ARMOUR Residential REIT and Ellington Financial is 0.51 (i.e., Very weak diversification). The correlation of ARMOUR Residential is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

ARMOUR Residential Correlation With Market

Weak diversification

The correlation between ARMOUR Residential REIT and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ARMOUR Residential REIT and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in ARMOUR Residential REIT. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Moving together with ARMOUR Stock

0.73	V	Visa Class A	Pair Corr
0.62	DB	Deutsche Bank AG	Pair Corr
0.66	LU	Lufax Holding	Pair Corr
0.7	LX	Lexinfintech Holdings	Pair Corr
0.63	MA	Mastercard	Pair Corr
0.79	XP	Xp Inc	Pair Corr
0.75	DOMH	Dominari Holdings Earnings Call This Week	Pair Corr
0.69	WSBF	Waterstone Financial	Pair Corr

Moving against ARMOUR Stock

0.58	LC	LendingClub Corp	Pair Corr
0.44	BX	Blackstone Group	Pair Corr
0.35	CG	Carlyle Group Normal Trading	Pair Corr
0.7	LGHLW	Lion Financial Group	Pair Corr
0.63	VRTS	Virtus Investment	Pair Corr
0.53	WULF	Terawulf Aggressive Push	Pair Corr
0.44	WD	Walker Dunlop	Pair Corr
0.43	WT	WisdomTree	Pair Corr
0.35	BLK	BlackRock	Pair Corr
0.33	ABR	Arbor Realty Trust Sell-off Trend	Pair Corr

Related Correlations Analysis

	EFC	TWO	DX	EARN	NLY	ABR	CIM	ORC	IVR	NYMT
EFC		0.95	0.95	-0.35	0.94	-0.74	-0.24	0.84	0.84	0.89	EFC
TWO	0.95		0.98	-0.29	0.99	-0.68	-0.16	0.94	0.94	0.84	TWO
DX	0.95	0.98		-0.41	0.98	-0.71	-0.25	0.89	0.91	0.88	DX
EARN	-0.35	-0.29	-0.41		-0.3	0.34	0.58	-0.11	-0.16	-0.42	EARN
NLY	0.94	0.99	0.98	-0.3		-0.65	-0.12	0.94	0.95	0.82	NLY
ABR	-0.74	-0.68	-0.71	0.34	-0.65		0.46	-0.57	-0.5	-0.77	ABR
CIM	-0.24	-0.16	-0.25	0.58	-0.12	0.46		-0.08	0.01	-0.32	CIM
ORC	0.84	0.94	0.89	-0.11	0.94	-0.57	-0.08		0.96	0.71	ORC
IVR	0.84	0.94	0.91	-0.16	0.95	-0.5	0.01	0.96		0.75	IVR
NYMT	0.89	0.84	0.88	-0.42	0.82	-0.77	-0.32	0.71	0.75		NYMT
	EFC	TWO	DX	EARN	NLY	ABR	CIM	ORC	IVR	NYMT

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

NLY	+ 0.99	TWO
DX	+ 0.98	TWO
NLY	+ 0.98	DX
IVR	+ 0.96	ORC
TWO	+ 0.95	EFC
DX	+ 0.95	EFC

High negative correlations

NYMT	- 0.77	ABR
ABR	- 0.74	EFC
ABR	- 0.71	DX
ABR	- 0.68	TWO
ABR	- 0.65	NLY
ORC	- 0.57	ABR

Risk-Adjusted Indicators

There is a big difference between ARMOUR Stock performing well and ARMOUR Residential Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze ARMOUR Residential's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
EFC	0.90	0.20	0.15	0.18	1.03	(0.95)	1.46	(1.88)	12.37
TWO	1.11	0.30	0.24	0.37	1.06	(1.26)	2.32	(1.60)	10.25
DX	0.81	0.21	0.25	0.44	0.72	(0.99)	1.66	(1.33)	5.15
EARN	0.82	(0.13)	0.00	(0.29)	0.00	0.00	1.58	(2.06)	5.74
NLY	1.03	0.22	0.19	0.25	1.05	(1.23)	2.42	(1.75)	6.82
ABR	1.38	(0.14)	0.00	(0.18)	0.00	0.00	2.49	(2.94)	15.82
CIM	1.19	(0.10)	0.00	(0.15)	0.00	0.00	2.63	(3.19)	10.76
ORC	0.96	0.11	0.11	0.24	1.08	(1.01)	1.93	(1.73)	8.39
IVR	1.15	0.13	0.09	0.17	1.43	(1.23)	2.32	(2.16)	8.74
NYMT	1.60	0.16	0.08	0.17	1.85	(1.74)	3.87	(2.71)	10.06

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