Correlation Between LOANDEPOT INC and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both LOANDEPOT INC and GREENX METALS 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 GREENX METALS 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 GREENX METALS LTD, you can compare the effects of market volatilities on LOANDEPOT INC and GREENX METALS 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOANDEPOT INC and GREENX METALS.
Diversification Opportunities for LOANDEPOT INC and GREENX METALS
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LOANDEPOT and GREENX is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding LOANDEPOT INC A and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of LOANDEPOT INC i.e., LOANDEPOT INC and GREENX METALS go up and down completely randomly.
Pair Corralation between LOANDEPOT INC and GREENX METALS
Assuming the 90 days horizon LOANDEPOT INC A is expected to under-perform the GREENX METALS. In addition to that, LOANDEPOT INC is 1.22 times more volatile than GREENX METALS LTD. It trades about -0.03 of its total potential returns per unit of risk. GREENX METALS LTD is currently generating about 0.24 per unit of volatility. If you would invest 41.00 in GREENX METALS LTD on October 29, 2024 and sell it today you would earn a total of 7.00 from holding GREENX METALS LTD or generate 17.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LOANDEPOT INC A vs. GREENX METALS LTD
Performance |
| Timeline |
| LOANDEPOT INC A |
| GREENX METALS LTD |
LOANDEPOT INC and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOANDEPOT INC and GREENX METALS
The main advantage of trading using opposite LOANDEPOT INC and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOANDEPOT INC position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| LOANDEPOT INC vs. Mr Cooper Group | LOANDEPOT INC vs. PennyMac Financial Services | LOANDEPOT INC vs. OSB GROUP PLC | LOANDEPOT INC vs. FIRST NATIONAL FIN |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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