Correlation Between LOANDEPOT INC and GEELY AUTOMOBILE
Can any of the company-specific risk be diversified away by investing in both LOANDEPOT INC and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE, you can compare the effects of market volatilities on LOANDEPOT INC and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOANDEPOT INC and GEELY AUTOMOBILE.
Diversification Opportunities for LOANDEPOT INC and GEELY AUTOMOBILE
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between LOANDEPOT and GEELY is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding LOANDEPOT INC A and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEELY AUTOMOBILE has no effect on the direction of LOANDEPOT INC i.e., LOANDEPOT INC and GEELY AUTOMOBILE go up and down completely randomly.
Pair Corralation between LOANDEPOT INC and GEELY AUTOMOBILE
Assuming the 90 days horizon LOANDEPOT INC A is expected to generate 2.75 times more return on investment than GEELY AUTOMOBILE. However, LOANDEPOT INC is 2.75 times more volatile than GEELY AUTOMOBILE. It trades about -0.01 of its potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about -0.08 per unit of risk. If you would invest 174.00 in LOANDEPOT INC A on October 30, 2024 and sell it today you would lose (5.00) from holding LOANDEPOT INC A or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LOANDEPOT INC A vs. GEELY AUTOMOBILE
Performance |
| Timeline |
| LOANDEPOT INC A |
| GEELY AUTOMOBILE |
LOANDEPOT INC and GEELY AUTOMOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOANDEPOT INC and GEELY AUTOMOBILE
The main advantage of trading using opposite LOANDEPOT INC and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOANDEPOT INC position performs unexpectedly, GEELY AUTOMOBILE 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 GEELY AUTOMOBILE will offset losses from the drop in GEELY AUTOMOBILE's long position.| LOANDEPOT INC vs. Merit Medical Systems | LOANDEPOT INC vs. Genertec Universal Medical | LOANDEPOT INC vs. Peijia Medical Limited | LOANDEPOT INC vs. Apollo Medical Holdings |
| GEELY AUTOMOBILE vs. Goosehead Insurance | GEELY AUTOMOBILE vs. ANTA SPORTS PRODUCT | GEELY AUTOMOBILE vs. Dave Busters Entertainment | GEELY AUTOMOBILE vs. Zurich Insurance Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |