Correlation Between ATRIUM MORTGAGE and LendingTree
Can any of the company-specific risk be diversified away by investing in both ATRIUM MORTGAGE and LendingTree 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 ATRIUM MORTGAGE and LendingTree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRIUM MORTGAGE INVESTM and LendingTree, you can compare the effects of market volatilities on ATRIUM MORTGAGE and LendingTree 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 ATRIUM MORTGAGE with a short position of LendingTree. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRIUM MORTGAGE and LendingTree.
Diversification Opportunities for ATRIUM MORTGAGE and LendingTree
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATRIUM and LendingTree is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ATRIUM MORTGAGE INVESTM and LendingTree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LendingTree and ATRIUM MORTGAGE 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 ATRIUM MORTGAGE INVESTM are associated (or correlated) with LendingTree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LendingTree has no effect on the direction of ATRIUM MORTGAGE i.e., ATRIUM MORTGAGE and LendingTree go up and down completely randomly.
Pair Corralation between ATRIUM MORTGAGE and LendingTree
Assuming the 90 days horizon ATRIUM MORTGAGE INVESTM is expected to under-perform the LendingTree. But the stock apears to be less risky and, when comparing its historical volatility, ATRIUM MORTGAGE INVESTM is 1.85 times less risky than LendingTree. The stock trades about -0.03 of its potential returns per unit of risk. The LendingTree is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,726 in LendingTree on October 20, 2024 and sell it today you would earn a total of 157.00 from holding LendingTree or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ATRIUM MORTGAGE INVESTM vs. LendingTree
Performance |
| Timeline |
| ATRIUM MORTGAGE INVESTM |
| LendingTree |
ATRIUM MORTGAGE and LendingTree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRIUM MORTGAGE and LendingTree
The main advantage of trading using opposite ATRIUM MORTGAGE and LendingTree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRIUM MORTGAGE position performs unexpectedly, LendingTree 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 LendingTree will offset losses from the drop in LendingTree's long position.| ATRIUM MORTGAGE vs. Mr Cooper Group | ATRIUM MORTGAGE vs. PennyMac Financial Services | ATRIUM MORTGAGE vs. OSB GROUP PLC | ATRIUM MORTGAGE vs. FIRST NATIONAL FIN |
| LendingTree vs. Mr Cooper Group | LendingTree vs. PennyMac Financial Services | LendingTree vs. OSB GROUP PLC | LendingTree vs. FIRST NATIONAL FIN |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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