Correlation Between OCN Old and Timbercreek Financial
Can any of the company-specific risk be diversified away by investing in both OCN Old and Timbercreek 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 OCN Old and Timbercreek Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OCN Old and Timbercreek Financial Corp, you can compare the effects of market volatilities on OCN Old and Timbercreek 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 OCN Old with a short position of Timbercreek Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of OCN Old and Timbercreek Financial.
Diversification Opportunities for OCN Old and Timbercreek Financial
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OCN and Timbercreek is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding OCN Old and Timbercreek Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timbercreek Financial and OCN Old 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 OCN Old are associated (or correlated) with Timbercreek Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timbercreek Financial has no effect on the direction of OCN Old i.e., OCN Old and Timbercreek Financial go up and down completely randomly.
Pair Corralation between OCN Old and Timbercreek Financial
If you would invest 3,494 in OCN Old on November 2, 2024 and sell it today you would earn a total of 0.00 from holding OCN Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.94% |
| Values | Daily Returns |
OCN Old vs. Timbercreek Financial Corp
Performance |
| Timeline |
| OCN Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Timbercreek Financial |
OCN Old and Timbercreek Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OCN Old and Timbercreek Financial
The main advantage of trading using opposite OCN Old and Timbercreek Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OCN Old position performs unexpectedly, Timbercreek 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 Timbercreek Financial will offset losses from the drop in Timbercreek Financial's long position.| OCN Old vs. CNFinance Holdings | OCN Old vs. Security National Financial | OCN Old vs. Encore Capital Group | OCN Old vs. Guild Holdings Co |
| Timbercreek Financial vs. PennyMac Finl Svcs | Timbercreek Financial vs. Encore Capital Group | Timbercreek Financial vs. Rocket Companies | Timbercreek Financial vs. Loandepot |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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