Correlation Between LOANDEPOT INC and Western Copper
Can any of the company-specific risk be diversified away by investing in both LOANDEPOT INC and Western Copper 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 LOANDEPOT INC and Western Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LOANDEPOT INC A and Western Copper and, you can compare the effects of market volatilities on LOANDEPOT INC and Western Copper 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 LOANDEPOT INC with a short position of Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOANDEPOT INC and Western Copper.
Diversification Opportunities for LOANDEPOT INC and Western Copper
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LOANDEPOT and Western is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding LOANDEPOT INC A and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper and LOANDEPOT INC 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 LOANDEPOT INC A are associated (or correlated) with Western Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Copper has no effect on the direction of LOANDEPOT INC i.e., LOANDEPOT INC and Western Copper go up and down completely randomly.
Pair Corralation between LOANDEPOT INC and Western Copper
Assuming the 90 days horizon LOANDEPOT INC A is expected to generate 1.54 times more return on investment than Western Copper. However, LOANDEPOT INC is 1.54 times more volatile than Western Copper and. It trades about 0.01 of its potential returns per unit of risk. Western Copper and is currently generating about -0.02 per unit of risk. If you would invest 195.00 in LOANDEPOT INC A on November 8, 2024 and sell it today you would lose (35.00) from holding LOANDEPOT INC A or give up 17.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LOANDEPOT INC A vs. Western Copper and
Performance |
| Timeline |
| LOANDEPOT INC A |
| Western Copper |
LOANDEPOT INC and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOANDEPOT INC and Western Copper
The main advantage of trading using opposite LOANDEPOT INC and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOANDEPOT INC position performs unexpectedly, Western Copper 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 Western Copper will offset losses from the drop in Western Copper's long position.| LOANDEPOT INC vs. REVO INSURANCE SPA | LOANDEPOT INC vs. BANKINTER ADR 2007 | LOANDEPOT INC vs. JSC Halyk bank | LOANDEPOT INC vs. Direct Line Insurance |
| Western Copper vs. Chunghwa Telecom Co | Western Copper vs. China Communications Services | Western Copper vs. FIREWEED METALS P | Western Copper vs. PRECISION DRILLING P |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |