Correlation Between Loandepot and Ocwen Financial
Can any of the company-specific risk be diversified away by investing in both Loandepot and Ocwen Financial 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 and Ocwen Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loandepot and Ocwen Financial, you can compare the effects of market volatilities on Loandepot and Ocwen Financial 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 with a short position of Ocwen Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loandepot and Ocwen Financial.
Diversification Opportunities for Loandepot and Ocwen Financial
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loandepot and Ocwen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Loandepot and Ocwen Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocwen Financial and Loandepot 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 are associated (or correlated) with Ocwen Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocwen Financial has no effect on the direction of Loandepot i.e., Loandepot and Ocwen Financial go up and down completely randomly.
Pair Corralation between Loandepot and Ocwen Financial
If you would invest 198.00 in Loandepot on August 27, 2024 and sell it today you would earn a total of 36.00 from holding Loandepot or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Loandepot vs. Ocwen Financial
Performance |
| Timeline |
| Loandepot |
| Ocwen Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Loandepot and Ocwen Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loandepot and Ocwen Financial
The main advantage of trading using opposite Loandepot and Ocwen Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loandepot position performs unexpectedly, Ocwen Financial 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 Ocwen Financial will offset losses from the drop in Ocwen Financial's long position.| Loandepot vs. CNFinance Holdings | Loandepot vs. Security National Financial | Loandepot vs. Encore Capital Group | Loandepot vs. UWM Holdings Corp |
| Ocwen Financial vs. CNFinance Holdings | Ocwen Financial vs. Security National Financial | Ocwen Financial vs. Encore Capital Group | Ocwen Financial vs. Guild Holdings Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |