Ready Capital Correlations

RC Stock

USD 5.03 0.05 0.98%

The current 90-days correlation between Ready Capital Corp and Ellington Financial is 0.5 (i.e., Very weak diversification). The correlation of Ready Capital 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.

Ready Capital Correlation With Market

Weak diversification

The correlation between Ready Capital Corp and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ready Capital Corp and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Ready Capital Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

For information on how to trade Ready Stock refer to our How to Trade Ready Stock guide.

Moving together with Ready Stock

0.87	MC	Moelis	Pair Corr
0.63	MS	Morgan Stanley	Pair Corr
0.8	AXP	American Express Sell-off Trend	Pair Corr
0.79	PYPL	PayPal Holdings Aggressive Push	Pair Corr
0.84	SOFI	SoFi Technologies Aggressive Push	Pair Corr
0.71	UPST	Upstart Holdings Buyout Trend	Pair Corr
0.85	PK	Park Hotels Resorts	Pair Corr
0.71	UE	Urban Edge Properties	Pair Corr

Moving against Ready Stock

0.71	DX	Dynex Capital	Pair Corr
0.69	O	Realty Income	Pair Corr
0.61	TWO	Two Harbors Investments	Pair Corr
0.61	AHT-PH	Ashford Hospitality Trust	Pair Corr
0.57	FORLU	Four Leaf Acquisition	Pair Corr
0.51	FR	First Industrial Realty	Pair Corr
0.47	BBUC	Brookfield Business Corp	Pair Corr
0.34	WY	Weyerhaeuser	Pair Corr
0.75	CDR-PC	Cedar Realty Trust	Pair Corr
0.7	AHT-PD	Ashford Hospitality Trust	Pair Corr
0.7	VICI	VICI Properties	Pair Corr
0.64	AHT-PI	Ashford Hospitality Trust	Pair Corr
0.64	MITT-PC	AG Mortgage Investment	Pair Corr
0.63	ELME	Elme Communities	Pair Corr
0.6	MITT-PA	AG Mortgage Investment	Pair Corr
0.59	AHT-PF	Ashford Hospitality Trust	Pair Corr
0.59	AHT-PG	Ashford Hospitality Trust	Pair Corr
0.59	WELL	Welltower	Pair Corr

Related Correlations Analysis

	EARN	EFC	DX	ORC	CIM	ARR	IVR	NYMT	ARI	KREF
EARN		-0.33	-0.4	-0.11	0.57	-0.09	-0.14	-0.39	-0.3	-0.24	EARN
EFC	-0.33		0.95	0.84	-0.23	0.73	0.84	0.88	0.91	0.71	EFC
DX	-0.4	0.95		0.9	-0.24	0.79	0.9	0.87	0.92	0.75	DX
ORC	-0.11	0.84	0.9		-0.09	0.84	0.96	0.71	0.9	0.81	ORC
CIM	0.57	-0.23	-0.24	-0.09		0.02	0.02	-0.3	-0.32	0.02	CIM
ARR	-0.09	0.73	0.79	0.84	0.02		0.89	0.71	0.8	0.78	ARR
IVR	-0.14	0.84	0.9	0.96	0.02	0.89		0.74	0.87	0.84	IVR
NYMT	-0.39	0.88	0.87	0.71	-0.3	0.71	0.74		0.81	0.65	NYMT
ARI	-0.3	0.91	0.92	0.9	-0.32	0.8	0.87	0.81		0.81	ARI
KREF	-0.24	0.71	0.75	0.81	0.02	0.78	0.84	0.65	0.81		KREF
	EARN	EFC	DX	ORC	CIM	ARR	IVR	NYMT	ARI	KREF

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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

IVR	+ 0.96	ORC
DX	+ 0.95	EFC
ARI	+ 0.92	DX
ARI	+ 0.91	EFC
ORC	+ 0.9	DX
IVR	+ 0.9	DX

High negative correlations

DX	- 0.4	EARN
NYMT	- 0.39	EARN
EFC	- 0.33	EARN
ARI	- 0.32	CIM
NYMT	- 0.3	CIM
ARI	- 0.3	EARN

Risk-Adjusted Indicators

There is a big difference between Ready Stock performing well and Ready Capital 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 Ready Capital'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
EARN	0.85	(0.19)	0.00	(0.42)	0.00	0.00	1.55	(2.10)	5.74
EFC	0.89	0.21	0.16	0.17	1.05	(0.93)	1.46	(1.88)	12.37
DX	0.80	0.23	0.29	0.43	0.72	(0.96)	1.64	(1.32)	5.09
ORC	0.97	0.12	0.14	0.25	1.07	(1.02)	1.93	(1.73)	8.39
CIM	1.19	(0.06)	0.00	(0.14)	0.00	0.00	2.63	(3.19)	10.76
ARR	0.82	0.04	0.06	0.01	1.12	(0.81)	1.59	(2.13)	4.93
IVR	1.16	0.15	0.12	0.19	1.40	(1.25)	2.32	(2.16)	8.74
NYMT	1.60	0.18	0.10	0.16	1.85	(1.74)	3.87	(2.71)	10.06
ARI	1.14	0.21	0.18	0.21	1.11	(1.46)	2.56	(1.71)	11.61
KREF	1.42	0.09	0.06	0.03	1.65	(1.50)	2.72	(2.30)	12.73

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