Correlation Between Annaly Capital and Upexi

Can any of the company-specific risk be diversified away by investing in both Annaly Capital and Upexi 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 Annaly Capital and Upexi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Annaly Capital Management and Upexi Inc, you can compare the effects of market volatilities on Annaly Capital and Upexi 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 Annaly Capital with a short position of Upexi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Annaly Capital and Upexi.

Diversification Opportunities for Annaly Capital and Upexi

-0.76

Correlation Coefficient

Annaly Capital  Upexi

Pay attention - limited upside

The 3 months correlation between Annaly and Upexi is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Annaly Capital Management and Upexi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upexi Inc and Annaly 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 Annaly Capital Management are associated (or correlated) with Upexi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upexi Inc has no effect on the direction of Annaly Capital i.e., Annaly Capital and Upexi go up and down completely randomly.

Pair Corralation between Annaly Capital and Upexi

Assuming the 90 days trading horizon Annaly Capital Management is expected to generate 0.03 times more return on investment than Upexi. However, Annaly Capital Management is 30.14 times less risky than Upexi. It trades about 0.19 of its potential returns per unit of risk. Upexi Inc is currently generating about -0.02 per unit of risk. If you would invest  2,409  in Annaly Capital Management on May 7, 2025 and sell it today you would earn a total of  129.00  from holding Annaly Capital Management or generate 5.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Annaly Capital Management  vs.  Upexi Inc

Annaly Capital Management

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Annaly Capital Management are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Annaly Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Upexi Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Upexi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Annaly Capital and Upexi

The main advantage of trading using opposite Annaly Capital and Upexi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Annaly Capital position performs unexpectedly, Upexi 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 Upexi will offset losses from the drop in Upexi's long position.

The idea behind Annaly Capital Management and Upexi Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.