Correlation Between OCN Old and Velocity Financial
Can any of the company-specific risk be diversified away by investing in both OCN Old and Velocity 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 Velocity 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 Velocity Financial Llc, you can compare the effects of market volatilities on OCN Old and Velocity 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 Velocity Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of OCN Old and Velocity Financial.
Diversification Opportunities for OCN Old and Velocity Financial
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OCN and Velocity is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding OCN Old and Velocity Financial Llc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Velocity Financial Llc 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 Velocity Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Velocity Financial Llc has no effect on the direction of OCN Old i.e., OCN Old and Velocity Financial go up and down completely randomly.
Pair Corralation between OCN Old and Velocity 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 | 0.97% |
| Values | Daily Returns |
OCN Old vs. Velocity Financial Llc
Performance |
| Timeline |
| OCN Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Velocity Financial Llc |
OCN Old and Velocity Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OCN Old and Velocity Financial
The main advantage of trading using opposite OCN Old and Velocity Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OCN Old position performs unexpectedly, Velocity 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 Velocity Financial will offset losses from the drop in Velocity 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 |
| Velocity Financial vs. Guild Holdings Co | Velocity Financial vs. Mr Cooper Group | Velocity Financial vs. Encore Capital Group | Velocity Financial vs. CNFinance Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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