Correlation Between Associated Capital and Rithm Capital
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Rithm Capital 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 Associated Capital and Rithm Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Rithm Capital Corp, you can compare the effects of market volatilities on Associated Capital and Rithm Capital 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 Associated Capital with a short position of Rithm Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Rithm Capital.
Diversification Opportunities for Associated Capital and Rithm Capital
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Associated and Rithm is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Rithm Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rithm Capital Corp and Associated 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 Associated Capital Group are associated (or correlated) with Rithm Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rithm Capital Corp has no effect on the direction of Associated Capital i.e., Associated Capital and Rithm Capital go up and down completely randomly.
Pair Corralation between Associated Capital and Rithm Capital
Allowing for the 90-day total investment horizon Associated Capital Group is expected to generate 1.59 times more return on investment than Rithm Capital. However, Associated Capital is 1.59 times more volatile than Rithm Capital Corp. It trades about 0.06 of its potential returns per unit of risk. Rithm Capital Corp is currently generating about 0.02 per unit of risk. If you would invest 3,249 in Associated Capital Group on August 24, 2024 and sell it today you would earn a total of 414.00 from holding Associated Capital Group or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. Rithm Capital Corp
Performance |
| Timeline |
| Associated Capital |
| Rithm Capital Corp |
Associated Capital and Rithm Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Rithm Capital
The main advantage of trading using opposite Associated Capital and Rithm Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Rithm Capital 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 Rithm Capital will offset losses from the drop in Rithm Capital's long position.| Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Munivest | Associated Capital vs. SEI Investments | Associated Capital vs. SCOR PK |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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