Correlation Between Maxus Realty and New York

Can any of the company-specific risk be diversified away by investing in both Maxus Realty and New York 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 Maxus Realty and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Maxus Realty Trust and New York Mortgage, you can compare the effects of market volatilities on Maxus Realty and New York 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 Maxus Realty with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxus Realty and New York.

Diversification Opportunities for Maxus Realty and New York

0.0

Correlation Coefficient

Maxus Realty  New York

Pay attention - limited upside

The 3 months correlation between Maxus and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maxus Realty Trust and New York Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Mortgage and Maxus Realty 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 Maxus Realty Trust are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Mortgage has no effect on the direction of Maxus Realty i.e., Maxus Realty and New York go up and down completely randomly.

Pair Corralation between Maxus Realty and New York

If you would invest  2,155  in New York Mortgage on December 27, 2024 and sell it today you would earn a total of  85.00  from holding New York Mortgage or generate 3.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Maxus Realty Trust  vs.  New York Mortgage

Maxus Realty Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maxus Realty Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Maxus Realty is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

New York Mortgage

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in New York Mortgage are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, New York is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Maxus Realty and New York

The main advantage of trading using opposite Maxus Realty and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxus Realty position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.

The idea behind Maxus Realty Trust and New York Mortgage pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.