Correlation Between Annaly Capital and BlackRock Science
Can any of the company-specific risk be diversified away by investing in both Annaly Capital and BlackRock Science 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 BlackRock Science 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 BlackRock Science and, you can compare the effects of market volatilities on Annaly Capital and BlackRock Science 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 BlackRock Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Annaly Capital and BlackRock Science.
Diversification Opportunities for Annaly Capital and BlackRock Science
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Annaly and BlackRock is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Annaly Capital Management and BlackRock Science and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Science 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 BlackRock Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Science has no effect on the direction of Annaly Capital i.e., Annaly Capital and BlackRock Science go up and down completely randomly.
Pair Corralation between Annaly Capital and BlackRock Science
Considering the 90-day investment horizon Annaly Capital is expected to generate 1.53 times less return on investment than BlackRock Science. In addition to that, Annaly Capital is 1.28 times more volatile than BlackRock Science and. It trades about 0.2 of its total potential returns per unit of risk. BlackRock Science and is currently generating about 0.39 per unit of volatility. If you would invest 1,755 in BlackRock Science and on May 7, 2025 and sell it today you would earn a total of 380.00 from holding BlackRock Science and or generate 21.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Annaly Capital Management vs. BlackRock Science and
Performance |
Timeline |
Annaly Capital Management |
BlackRock Science |
Annaly Capital and BlackRock Science Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Annaly Capital and BlackRock Science
The main advantage of trading using opposite Annaly Capital and BlackRock Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Annaly Capital position performs unexpectedly, BlackRock Science 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 BlackRock Science will offset losses from the drop in BlackRock Science's long position.Annaly Capital vs. ARMOUR Residential REIT | Annaly Capital vs. Two Harbors Investments | Annaly Capital vs. Arbor Realty Trust | Annaly Capital vs. Chimera Investment |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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