Correlation Between AG Mortgage and Choice Hotels
Can any of the company-specific risk be diversified away by investing in both AG Mortgage and Choice Hotels 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 AG Mortgage and Choice Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Mortgage Investment and Choice Hotels International, you can compare the effects of market volatilities on AG Mortgage and Choice Hotels 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 AG Mortgage with a short position of Choice Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Choice Hotels.
Diversification Opportunities for AG Mortgage and Choice Hotels
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MITN and Choice is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Choice Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Hotels Intern and AG Mortgage 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 AG Mortgage Investment are associated (or correlated) with Choice Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Hotels Intern has no effect on the direction of AG Mortgage i.e., AG Mortgage and Choice Hotels go up and down completely randomly.
Pair Corralation between AG Mortgage and Choice Hotels
Given the investment horizon of 90 days AG Mortgage Investment is expected to generate 0.25 times more return on investment than Choice Hotels. However, AG Mortgage Investment is 3.94 times less risky than Choice Hotels. It trades about 0.05 of its potential returns per unit of risk. Choice Hotels International is currently generating about -0.22 per unit of risk. If you would invest 2,481 in AG Mortgage Investment on September 7, 2025 and sell it today you would earn a total of 41.00 from holding AG Mortgage Investment or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Mortgage Investment vs. Choice Hotels International
Performance |
| Timeline |
| AG Mortgage Investment |
| Choice Hotels Intern |
AG Mortgage and Choice Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Mortgage and Choice Hotels
The main advantage of trading using opposite AG Mortgage and Choice Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage position performs unexpectedly, Choice Hotels 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 Choice Hotels will offset losses from the drop in Choice Hotels' long position.| AG Mortgage vs. The Carlyle Group | AG Mortgage vs. Stifel Financial | AG Mortgage vs. PGIM Corporate Bond | AG Mortgage vs. Affiliated Managers Group, |
| Choice Hotels vs. Crombie Real Estate | Choice Hotels vs. BCP Investment Corp | Choice Hotels vs. BJs Restaurants | Choice Hotels vs. Algonquin Power Utilities |
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 Stocks Directory module to find actively traded stocks across global markets.
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