Correlation Between Dynex Capital and Arbor Realty
Can any of the company-specific risk be diversified away by investing in both Dynex Capital and Arbor Realty 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 Dynex Capital and Arbor Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynex Capital and Arbor Realty Trust, you can compare the effects of market volatilities on Dynex Capital and Arbor Realty 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 Dynex Capital with a short position of Arbor Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Arbor Realty.
Diversification Opportunities for Dynex Capital and Arbor Realty
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dynex and Arbor is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Arbor Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbor Realty Trust and Dynex Capital 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 Dynex Capital are associated (or correlated) with Arbor Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbor Realty Trust has no effect on the direction of Dynex Capital i.e., Dynex Capital and Arbor Realty go up and down completely randomly.
Pair Corralation between Dynex Capital and Arbor Realty
Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 0.43 times more return on investment than Arbor Realty. However, Dynex Capital is 2.33 times less risky than Arbor Realty. It trades about 0.19 of its potential returns per unit of risk. Arbor Realty Trust is currently generating about -0.18 per unit of risk. If you would invest 1,196 in Dynex Capital on August 25, 2025 and sell it today you would earn a total of 153.00 from holding Dynex Capital or generate 12.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynex Capital vs. Arbor Realty Trust
Performance |
| Timeline |
| Dynex Capital |
| Arbor Realty Trust |
Dynex Capital and Arbor Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynex Capital and Arbor Realty
The main advantage of trading using opposite Dynex Capital and Arbor Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital position performs unexpectedly, Arbor Realty 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 Arbor Realty will offset losses from the drop in Arbor Realty's long position.| Dynex Capital vs. Arbor Realty Trust | Dynex Capital vs. ARMOUR Residential REIT | Dynex Capital vs. Franklin BSP Realty | Dynex Capital vs. Agree Realty |
| Arbor Realty vs. Dynex Capital | Arbor Realty vs. Franklin BSP Realty | Arbor Realty vs. ARMOUR Residential REIT | Arbor Realty vs. Agree Realty |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |