Correlation Between AG Mortgage and Smith Douglas
Can any of the company-specific risk be diversified away by investing in both AG Mortgage and Smith Douglas 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 Smith Douglas 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 Smith Douglas Homes, you can compare the effects of market volatilities on AG Mortgage and Smith Douglas 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 Smith Douglas. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Smith Douglas.
Diversification Opportunities for AG Mortgage and Smith Douglas
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between MITT and Smith is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Smith Douglas Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smith Douglas Homes 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 Smith Douglas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smith Douglas Homes has no effect on the direction of AG Mortgage i.e., AG Mortgage and Smith Douglas go up and down completely randomly.
Pair Corralation between AG Mortgage and Smith Douglas
Given the investment horizon of 90 days AG Mortgage Investment is expected to generate 0.51 times more return on investment than Smith Douglas. However, AG Mortgage Investment is 1.96 times less risky than Smith Douglas. It trades about 0.09 of its potential returns per unit of risk. Smith Douglas Homes is currently generating about -0.09 per unit of risk. If you would invest 714.00 in AG Mortgage Investment on August 19, 2025 and sell it today you would earn a total of 58.00 from holding AG Mortgage Investment or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Mortgage Investment vs. Smith Douglas Homes
Performance |
| Timeline |
| AG Mortgage Investment |
| Smith Douglas Homes |
AG Mortgage and Smith Douglas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Mortgage and Smith Douglas
The main advantage of trading using opposite AG Mortgage and Smith Douglas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage position performs unexpectedly, Smith Douglas 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 Smith Douglas will offset losses from the drop in Smith Douglas' long position.| AG Mortgage vs. Angel Oak Mortgage | AG Mortgage vs. Nexpoint Real Estate | AG Mortgage vs. Chicago Atlantic Real | AG Mortgage vs. AG Mortgage Investment |
| Smith Douglas vs. Franklin BSP Realty | Smith Douglas vs. Saul Centers | Smith Douglas vs. Real Brokerage | Smith Douglas vs. MFA Financial |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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