Ellington Residential Correlations

EARN Stock

USD 5.76 0.21 3.52%

The current 90-days correlation between Ellington Residential and Dynex Capital is 0.4 (i.e., Very weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ellington Residential moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ellington Residential Mortgage moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Ellington Residential Correlation With Market

Very weak diversification

The correlation between Ellington Residential Mortgage and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ellington Residential Mortgage and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Ellington Residential Mortgage. 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 Ellington Stock

0.68	BN	Brookfield Corp	Pair Corr
0.68	BX	Blackstone Group	Pair Corr
0.69	CG	Carlyle Group	Pair Corr
0.79	MC	Moelis	Pair Corr
0.64	MS	Morgan Stanley	Pair Corr
0.67	PX	P10 Inc	Pair Corr
0.76	RC	Ready Capital Corp	Pair Corr
0.72	RM	Regional Management Corp	Pair Corr
0.68	SF	Stifel Financial	Pair Corr

Moving against Ellington Stock

0.68	DB	Deutsche Bank AG	Pair Corr
0.65	LX	Lexinfintech Holdings Buyout Trend	Pair Corr
0.54	LU	Lufax Holding	Pair Corr
0.79	TW	Tradeweb Markets	Pair Corr
0.72	DYCQ	DT Cloud Acquisition	Pair Corr
0.56	DMYY	dMY Squared Technology	Pair Corr
0.48	EMCGW	Embrace Change Acqui	Pair Corr
0.45	EMCGR	Embrace Change Acqui	Pair Corr
0.43	XP	Xp Inc	Pair Corr
0.33	WU	Western Union	Pair Corr

Related Correlations Analysis

	DX	ORC	ARR	RC	EFC	ARI	KREF	TWO
DX		0.88	0.73	-0.69	0.93	0.92	0.81	0.98	DX
ORC	0.88		0.81	-0.32	0.77	0.86	0.82	0.93	ORC
ARR	0.73	0.81		-0.16	0.55	0.67	0.64	0.72	ARR
RC	-0.69	-0.32	-0.16		-0.78	-0.61	-0.44	-0.61	RC
EFC	0.93	0.77	0.55	-0.78		0.91	0.74	0.92	EFC
ARI	0.92	0.86	0.67	-0.61	0.91		0.81	0.93	ARI
KREF	0.81	0.82	0.64	-0.44	0.74	0.81		0.86	KREF
TWO	0.98	0.93	0.72	-0.61	0.92	0.93	0.86		TWO
	DX	ORC	ARR	RC	EFC	ARI	KREF	TWO

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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

TWO	+ 0.98	DX
EFC	+ 0.93	DX
TWO	+ 0.93	ORC
TWO	+ 0.93	ARI
ARI	+ 0.92	DX
TWO	+ 0.92	EFC

High negative correlations

EFC	- 0.78	RC
RC	- 0.69	DX
TWO	- 0.61	RC
ARI	- 0.61	RC
KREF	- 0.44	RC
RC	- 0.32	ORC

Risk-Adjusted Indicators

There is a big difference between Ellington Stock performing well and Ellington 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 Ellington 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
DX	0.83	0.18	0.20	0.36	0.78	(1.00)	1.66	(1.76)	5.15
ORC	0.97	0.10	0.10	0.22	1.06	(1.03)	1.93	(1.73)	8.39
ARR	0.84	(0.01)	0.00	(0.05)	0.00	0.00	1.59	(2.13)	5.19
RC	1.86	(0.34)	0.00	(0.22)	0.00	0.00	2.34	(2.92)	31.28
EFC	0.87	0.20	0.19	(0.95)	0.89	(0.95)	1.46	(1.85)	12.37
ARI	1.08	0.23	0.24	4.77	0.79	(1.42)	2.56	(1.70)	11.61
KREF	1.29	0.18	0.14	0.20	1.26	(1.46)	2.72	(2.11)	12.73
TWO	1.09	0.32	0.26	0.37	0.92	(1.23)	2.32	(1.58)	10.25

Ellington Residential Corporate Management

Daniel JD	General Counsel	Profile
Jason Frank	Deputy Sec	Profile
Ronald Simon	Independent Trustee	Profile
David Miller	Independent Trustee	Profile
Christopher CPA	Chief Officer	Profile

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