Ready Capital Correlations

RC Stock

USD 7.46 0.07 0.95%

The current 90-days correlation between Ready Capital Corp and Ellington Financial is 0.51 (i.e., Very weak diversification). The correlation of Ready Capital 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.

Ready Capital Correlation With Market

Very weak diversification

The correlation between Ready Capital Corp and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ready Capital Corp and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Ready Capital Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

For information on how to trade Ready Stock refer to our How to Trade Ready Stock guide.

Moving together with Ready Stock

0.73	ARI	Apollo Commercial Real	Pair Corr
0.81	EFC	Ellington Financial	Pair Corr
0.68	ACRE	Ares Commercial Real	Pair Corr
0.76	CMTG	Claros Mortgage Trust	Pair Corr
0.65	FR	First Industrial Realty	Pair Corr
0.65	UK	Ucommune International	Pair Corr
0.71	AHT-PH	Ashford Hospitality Trust Downward Rally	Pair Corr
0.64	AHT-PI	Ashford Hospitality Trust	Pair Corr
0.65	AHT-PG	Ashford Hospitality Trust	Pair Corr

Moving against Ready Stock

0.44	UE	Urban Edge Properties	Pair Corr
0.67	NREF-PA	NexPoint Real Estate	Pair Corr
0.63	CDR-PC	Cedar Realty Trust	Pair Corr
0.55	MITT-PB	AG Mortgage Investment	Pair Corr
0.51	VNO-PN	Vornado Realty Trust	Pair Corr
0.47	VNO-PO	Vornado Realty Trust	Pair Corr
0.46	VNO-PM	Vornado Realty Trust	Pair Corr
0.44	ESBA	Empire State Realty	Pair Corr
0.42	MITT-PA	AG Mortgage Investment	Pair Corr
0.41	BFS-PE	Saul Centers	Pair Corr
0.39	WELL	Welltower	Pair Corr

Related Correlations Analysis

	EARN	EFC	DX	ORC	CIM	ARR	IVR	NYMT	ARI	KREF
EARN		0.64	0.44	0.6	0.5	0.68	0.66	0.23	0.08	0.35	EARN
EFC	0.64		0.28	0.78	0.57	0.88	0.59	0.6	0.62	0.66	EFC
DX	0.44	0.28		0.65	0.02	0.15	0.16	0.41	0.22	0.08	DX
ORC	0.6	0.78	0.65		0.3	0.7	0.55	0.69	0.54	0.37	ORC
CIM	0.5	0.57	0.02	0.3		0.75	0.76	0.15	-0.01	0.78	CIM
ARR	0.68	0.88	0.15	0.7	0.75		0.81	0.48	0.37	0.71	ARR
IVR	0.66	0.59	0.16	0.55	0.76	0.81		0.31	-0.04	0.64	IVR
NYMT	0.23	0.6	0.41	0.69	0.15	0.48	0.31		0.7	0.5	NYMT
ARI	0.08	0.62	0.22	0.54	-0.01	0.37	-0.04	0.7		0.34	ARI
KREF	0.35	0.66	0.08	0.37	0.78	0.71	0.64	0.5	0.34		KREF
	EARN	EFC	DX	ORC	CIM	ARR	IVR	NYMT	ARI	KREF

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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

ARR	+ 0.88	EFC
IVR	+ 0.81	ARR
ORC	+ 0.78	EFC
KREF	+ 0.78	CIM
IVR	+ 0.76	CIM
ARR	+ 0.75	CIM

High negative correlations

ARI	- 0.04	IVR
ARI	- 0.01	CIM

Risk-Adjusted Indicators

There is a big difference between Ready Stock performing well and Ready Capital 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 Ready Capital'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
EARN	0.88	0.03	(0.07)	0.29	0.98	(1.04)	1.74	(1.76)	5.14
EFC	0.64	(0.11)	0.00	(0.17)	0.00	0.00	0.95	(1.18)	4.25
DX	0.75	0.02	(0.06)	0.18	1.03	(0.72)	1.38	(1.47)	4.37
ORC	0.88	(0.01)	(0.07)	0.08	1.44	(0.82)	1.69	(2.02)	6.41
CIM	1.00	(0.12)	0.00	(0.06)	0.00	0.00	1.69	(2.36)	8.55
ARR	0.77	(0.07)	0.00	(0.06)	0.00	0.00	1.69	(2.02)	4.86
IVR	1.04	0.01	(0.05)	0.18	1.48	(1.05)	1.85	(2.89)	6.35
NYMT	1.44	(0.04)	(0.05)	0.06	1.80	(1.48)	2.94	(3.11)	7.18
ARI	0.91	(0.22)	0.00	(0.40)	0.00	0.00	1.47	(2.25)	7.06
KREF	0.92	(0.17)	0.00	(0.15)	0.00	0.00	1.63	(2.34)	5.40

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