Correlation Between Mr Cooper and OSB GROUP
Can any of the company-specific risk be diversified away by investing in both Mr Cooper and OSB GROUP 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 Mr Cooper and OSB GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mr Cooper Group and OSB GROUP PLC, you can compare the effects of market volatilities on Mr Cooper and OSB GROUP 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 Mr Cooper with a short position of OSB GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mr Cooper and OSB GROUP.
Diversification Opportunities for Mr Cooper and OSB GROUP
Weak diversification
The 3 months correlation between 07WA and OSB is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Mr Cooper Group and OSB GROUP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSB GROUP PLC and Mr Cooper 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 Mr Cooper Group are associated (or correlated) with OSB GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSB GROUP PLC has no effect on the direction of Mr Cooper i.e., Mr Cooper and OSB GROUP go up and down completely randomly.
Pair Corralation between Mr Cooper and OSB GROUP
Assuming the 90 days trading horizon Mr Cooper Group is expected to generate 0.73 times more return on investment than OSB GROUP. However, Mr Cooper Group is 1.37 times less risky than OSB GROUP. It trades about 0.26 of its potential returns per unit of risk. OSB GROUP PLC is currently generating about -0.02 per unit of risk. If you would invest 9,036 in Mr Cooper Group on October 20, 2024 and sell it today you would earn a total of 964.00 from holding Mr Cooper Group or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mr Cooper Group vs. OSB GROUP PLC
Performance |
| Timeline |
| Mr Cooper Group |
| OSB GROUP PLC |
Mr Cooper and OSB GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mr Cooper and OSB GROUP
The main advantage of trading using opposite Mr Cooper and OSB GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mr Cooper position performs unexpectedly, OSB GROUP 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 OSB GROUP will offset losses from the drop in OSB GROUP's long position.| Mr Cooper vs. Southwest Airlines Co | Mr Cooper vs. ALTAIR RES INC | Mr Cooper vs. Nok Airlines PCL | Mr Cooper vs. SINGAPORE AIRLINES |
| OSB GROUP vs. Mr Cooper Group | OSB GROUP vs. PennyMac Financial Services | OSB GROUP vs. FIRST NATIONAL FIN | OSB GROUP vs. Deutsche Pfandbriefbank AG |
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 CEOs Directory module to screen CEOs from public companies around the world.
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