New Residential Correlations

0K76 Stock

11.09 0.06 0.54%

The current 90-days correlation between New Residential Inve and Lendinvest PLC is 0.11 (i.e., Average diversification). The correlation of New Residential 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. If the correlation is 0, the equities are not correlated; they are entirely random.

New Residential Correlation With Market

Weak diversification

The correlation between New Residential Investment and DJI is 0.36 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding New Residential Investment and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to New Residential could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace New Residential when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back New Residential - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling New Residential Investment to buy it.

Moving together with New Stock

0.67	RMMC	River and Mercantile Earnings Call This Week	Pair Corr
0.86	MINI	Miton UK MicroCap	Pair Corr

Moving against New Stock

0.75	0R1I	NVIDIA Corp	Pair Corr
0.63	CHRY	Chrysalis Investments	Pair Corr
0.56	GIF	Gulf Investment	Pair Corr
0.33	SIGC	Sherborne Investors	Pair Corr

Related Correlations Analysis

	LINV	NMT	0R8Q	AATG	JUP	JUKC	FSEM	SUPR	AEO
LINV		0.22	0.45	-0.4	0.36	0.51	0.25	0.52	0.87	LINV
NMT	0.22		0.05	0.02	0.41	0.15	0.16	0.02	-0.05	NMT
0R8Q	0.45	0.05		-0.27	0.68	0.63	0.75	0.88	0.44	0R8Q
AATG	-0.4	0.02	-0.27		0.0	-0.09	-0.25	-0.32	-0.42	AATG
JUP	0.36	0.41	0.68	0.0		0.7	0.69	0.55	0.19	JUP
JUKC	0.51	0.15	0.63	-0.09	0.7		0.42	0.67	0.49	JUKC
FSEM	0.25	0.16	0.75	-0.25	0.69	0.42		0.66	0.18	FSEM
SUPR	0.52	0.02	0.88	-0.32	0.55	0.67	0.66		0.54	SUPR
AEO	0.87	-0.05	0.44	-0.42	0.19	0.49	0.18	0.54		AEO
	LINV	NMT	0R8Q	AATG	JUP	JUKC	FSEM	SUPR	AEO

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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

SUPR	+ 0.88	0R8Q
AEO	+ 0.87	LINV
FSEM	+ 0.75	0R8Q
JUKC	+ 0.7	JUP
FSEM	+ 0.69	JUP
JUP	+ 0.68	0R8Q

High negative correlations

AEO	- 0.42	AATG
AATG	- 0.4	LINV
SUPR	- 0.32	AATG
AATG	- 0.27	0R8Q
FSEM	- 0.25	AATG
JUKC	- 0.09	AATG

Risk-Adjusted Indicators

There is a big difference between New Stock performing well and New Residential 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 New Residential'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
LINV	0.66	(0.19)	0.00	5.37	0.00	0.00	1.82	(1.89)	6.09
NMT	2.09	0.09	0.00	0.47	4.09	(7.78)	9.09	(5.56)	36.62
0R8Q	1.27	(0.38)	0.00	(0.69)	0.00	0.00	1.95	(2.15)	20.00
AATG	0.25	(0.02)	0.00	(0.60)	0.00	0.00	0.55	0.00	6.29
JUP	1.10	(0.09)	0.00	(0.06)	0.00	0.00	1.96	(2.21)	8.59
JUKC	0.46	(0.07)	0.00	(0.08)	0.00	0.00	0.92	(1.06)	2.36
FSEM	0.28	(0.02)	(0.29)	(0.18)	0.31	(0.43)	0.51	(0.51)	2.31
SUPR	0.79	(0.10)	0.00	(0.57)	0.00	0.00	1.75	(1.81)	4.93
AEO	0.64	(0.18)	0.00	(0.37)	0.00	0.00	1.94	(1.80)	6.74

Be your own money manager

Our tools can tell you how much better you can do entering a position in New Residential without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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