Ares Commercial Correlations

ACRE Stock

USD 6.61 0.01 0.15%

The current 90-days correlation between Ares Commercial Real and Broadmark Realty Capital is -0.05 (i.e., Good diversification). The correlation of Ares Commercial 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.

Ares Commercial Correlation With Market

Very weak diversification

The correlation between Ares Commercial Real and DJI is 0.5 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ares Commercial Real and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ares Commercial Real. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Moving together with Ares Stock

0.68	WT	WisdomTree	Pair Corr
0.66	WU	Western Union Earnings Call This Week	Pair Corr
0.67	VRTS	Virtus Investment	Pair Corr
0.74	WRLD	World Acceptance Earnings Call This Week	Pair Corr
0.65	WSBF	Waterstone Financial Earnings Call This Week	Pair Corr

Moving against Ares Stock

0.47	TW	Tradeweb Markets	Pair Corr
0.33	LX	Lexinfintech Holdings	Pair Corr
0.74	EZPW	EZCORP Inc Fiscal Year End 20th of November 2024	Pair Corr
0.35	GCMGW	GCM Grosvenor	Pair Corr
0.33	FCFS	FirstCash	Pair Corr
0.32	VIRT	Virtu Financial Fiscal Year End 23rd of January 2025	Pair Corr

Related Correlations Analysis

	BRMK	TWO	ARI	EFC	DX	CHMI	EARN	TRTX	NREF
BRMK		0.27	-0.32	0.29	0.49	0.04	0.41	0.46	0.54	BRMK
TWO	0.27		0.37	0.84	0.63	-0.01	0.68	0.61	0.55	TWO
ARI	-0.32	0.37		0.04	-0.41	0.38	0.05	0.53	-0.42	ARI
EFC	0.29	0.84	0.04		0.77	-0.34	0.64	0.27	0.73	EFC
DX	0.49	0.63	-0.41	0.77		-0.2	0.67	0.2	0.84	DX
CHMI	0.04	-0.01	0.38	-0.34	-0.2		0.2	0.5	-0.47	CHMI
EARN	0.41	0.68	0.05	0.64	0.67	0.2		0.51	0.5	EARN
TRTX	0.46	0.61	0.53	0.27	0.2	0.5	0.51		0.15	TRTX
NREF	0.54	0.55	-0.42	0.73	0.84	-0.47	0.5	0.15		NREF
	BRMK	TWO	ARI	EFC	DX	CHMI	EARN	TRTX	NREF

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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

EFC	+ 0.84	TWO
NREF	+ 0.84	DX
DX	+ 0.77	EFC
NREF	+ 0.73	EFC
EARN	+ 0.68	TWO
EARN	+ 0.67	DX

High negative correlations

NREF	- 0.47	CHMI
NREF	- 0.42	ARI
DX	- 0.41	ARI
CHMI	- 0.34	EFC
ARI	- 0.32	BRMK
CHMI	- 0.2	DX

Risk-Adjusted Indicators

There is a big difference between Ares Stock performing well and Ares Commercial 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 Ares Commercial'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
BRMK	1.63	(0.03)	0.00	0.37	0.00	0.00	3.02	(4.08)	8.68
TWO	0.90	(0.13)	0.00	(0.06)	0.00	0.00	1.59	(2.25)	5.31
ARI	1.15	(0.32)	0.00	(0.23)	0.00	0.00	1.85	(3.48)	8.89
EFC	0.78	(0.07)	(0.06)	(0.01)	1.33	(0.67)	1.38	(1.83)	5.59
DX	0.83	(0.02)	(0.04)	0.05	1.14	(0.80)	1.61	(1.66)	5.08
CHMI	1.00	(0.12)	0.00	(0.67)	0.00	0.00	1.63	(2.86)	7.77
EARN	0.79	(0.06)	(0.05)	0.01	1.17	(0.92)	1.92	(1.35)	7.55
TRTX	1.18	(0.08)	0.00	(1.11)	0.00	0.00	2.47	(3.33)	7.07
NREF	1.58	0.00	0.00	0.09	2.34	(1.52)	3.00	(3.41)	13.54

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