Correlation Between Dynex Capital and Opendoor Technologies

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Can any of the company-specific risk be diversified away by investing in both Dynex Capital and Opendoor Technologies 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 Dynex Capital and Opendoor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynex Capital and Opendoor Technologies, you can compare the effects of market volatilities on Dynex Capital and Opendoor Technologies 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 Dynex Capital with a short position of Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Opendoor Technologies.

Diversification Opportunities for Dynex Capital and Opendoor Technologies

DynexOpendoorDiversified AwayDynexOpendoorDiversified Away100%
-0.54
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Dynex and Opendoor is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies and Dynex 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 Dynex Capital are associated (or correlated) with Opendoor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opendoor Technologies has no effect on the direction of Dynex Capital i.e., Dynex Capital and Opendoor Technologies go up and down completely randomly.

Pair Corralation between Dynex Capital and Opendoor Technologies

Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 0.22 times more return on investment than Opendoor Technologies. However, Dynex Capital is 4.45 times less risky than Opendoor Technologies. It trades about 0.52 of its potential returns per unit of risk. Opendoor Technologies is currently generating about -0.01 per unit of risk. If you would invest  1,272  in Dynex Capital on November 30, 2024 and sell it today you would earn a total of  123.00  from holding Dynex Capital or generate 9.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Dynex Capital  vs.  Opendoor Technologies

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-10010203040
JavaScript chart by amCharts 3.21.15DX OPEN
       Timeline  
Dynex Capital 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Dynex Capital are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Dynex Capital showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1212.51313.514
Opendoor Technologies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Opendoor Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.41.61.822.22.4

Dynex Capital and Opendoor Technologies Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.38-1.78-1.18-0.580.0099510.691.382.082.78 0.10.20.30.40.50.6
JavaScript chart by amCharts 3.21.15DX OPEN
       Returns  

Pair Trading with Dynex Capital and Opendoor Technologies

The main advantage of trading using opposite Dynex Capital and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital position performs unexpectedly, Opendoor Technologies 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 Opendoor Technologies will offset losses from the drop in Opendoor Technologies' long position.
The idea behind Dynex Capital and Opendoor Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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