Correlation Between GSW Immobilien and LOANDEPOT INC
Can any of the company-specific risk be diversified away by investing in both GSW Immobilien and LOANDEPOT INC 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 GSW Immobilien and LOANDEPOT INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSW Immobilien AG and LOANDEPOT INC A, you can compare the effects of market volatilities on GSW Immobilien and LOANDEPOT INC 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 GSW Immobilien with a short position of LOANDEPOT INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSW Immobilien and LOANDEPOT INC.
Diversification Opportunities for GSW Immobilien and LOANDEPOT INC
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GSW and LOANDEPOT is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding GSW Immobilien AG and LOANDEPOT INC A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOANDEPOT INC A and GSW Immobilien 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 GSW Immobilien AG are associated (or correlated) with LOANDEPOT INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOANDEPOT INC A has no effect on the direction of GSW Immobilien i.e., GSW Immobilien and LOANDEPOT INC go up and down completely randomly.
Pair Corralation between GSW Immobilien and LOANDEPOT INC
Assuming the 90 days trading horizon GSW Immobilien AG is expected to generate 2.68 times more return on investment than LOANDEPOT INC. However, GSW Immobilien is 2.68 times more volatile than LOANDEPOT INC A. It trades about -0.02 of its potential returns per unit of risk. LOANDEPOT INC A is currently generating about -0.1 per unit of risk. If you would invest 9,000 in GSW Immobilien AG on November 7, 2024 and sell it today you would lose (1,200) from holding GSW Immobilien AG or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
GSW Immobilien AG vs. LOANDEPOT INC A
Performance |
| Timeline |
| GSW Immobilien AG |
| LOANDEPOT INC A |
GSW Immobilien and LOANDEPOT INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSW Immobilien and LOANDEPOT INC
The main advantage of trading using opposite GSW Immobilien and LOANDEPOT INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSW Immobilien position performs unexpectedly, LOANDEPOT INC 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 LOANDEPOT INC will offset losses from the drop in LOANDEPOT INC's long position.| GSW Immobilien vs. Jacquet Metal Service | GSW Immobilien vs. Yuexiu Transport Infrastructure | GSW Immobilien vs. USWE SPORTS AB | GSW Immobilien vs. AEON METALS LTD |
| LOANDEPOT INC vs. MARKET VECTR RETAIL | LOANDEPOT INC vs. MAVEN WIRELESS SWEDEN | LOANDEPOT INC vs. Mobilezone Holding AG | LOANDEPOT INC vs. Highlight Communications 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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