Correlation Between LOANDEPOT INC and Hyster-Yale Materials
Can any of the company-specific risk be diversified away by investing in both LOANDEPOT INC and Hyster-Yale Materials 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 Hyster-Yale Materials 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 Hyster Yale Materials Handling, you can compare the effects of market volatilities on LOANDEPOT INC and Hyster-Yale Materials 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 Hyster-Yale Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOANDEPOT INC and Hyster-Yale Materials.
Diversification Opportunities for LOANDEPOT INC and Hyster-Yale Materials
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between LOANDEPOT and Hyster-Yale is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding LOANDEPOT INC A and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster-Yale Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of LOANDEPOT INC i.e., LOANDEPOT INC and Hyster-Yale Materials go up and down completely randomly.
Pair Corralation between LOANDEPOT INC and Hyster-Yale Materials
Assuming the 90 days horizon LOANDEPOT INC A is expected to under-perform the Hyster-Yale Materials. In addition to that, LOANDEPOT INC is 2.34 times more volatile than Hyster Yale Materials Handling. It trades about -0.28 of its total potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.11 per unit of volatility. If you would invest 5,150 in Hyster Yale Materials Handling on October 17, 2024 and sell it today you would lose (210.00) from holding Hyster Yale Materials Handling or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
LOANDEPOT INC A vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| LOANDEPOT INC A |
| Hyster Yale Materials |
LOANDEPOT INC and Hyster-Yale Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOANDEPOT INC and Hyster-Yale Materials
The main advantage of trading using opposite LOANDEPOT INC and Hyster-Yale Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOANDEPOT INC position performs unexpectedly, Hyster-Yale Materials 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 Hyster-Yale Materials will offset losses from the drop in Hyster-Yale Materials' long position.| LOANDEPOT INC vs. Sanyo Chemical Industries | LOANDEPOT INC vs. Nomad Foods | LOANDEPOT INC vs. Tyson Foods | LOANDEPOT INC vs. KINGBOARD CHEMICAL |
| Hyster-Yale Materials vs. LOANDEPOT INC A | Hyster-Yale Materials vs. TOMBADOR IRON LTD | Hyster-Yale Materials vs. Sixt Leasing SE | Hyster-Yale Materials vs. UNITED RENTALS |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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