Correlation Between OFFICE DEPOT and Ladder Capital
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and Ladder Capital 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 OFFICE DEPOT and Ladder Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and Ladder Capital Corp, you can compare the effects of market volatilities on OFFICE DEPOT and Ladder Capital 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 OFFICE DEPOT with a short position of Ladder Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Ladder Capital.
Diversification Opportunities for OFFICE DEPOT and Ladder Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and Ladder is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and Ladder Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladder Capital Corp and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with Ladder Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladder Capital Corp has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and Ladder Capital go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Ladder Capital
If you would invest 1,920 in OFFICE DEPOT on October 14, 2024 and sell it today you would earn a total of 0.00 from holding OFFICE DEPOT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
OFFICE DEPOT vs. Ladder Capital Corp
Performance |
| Timeline |
| OFFICE DEPOT |
| Ladder Capital Corp |
OFFICE DEPOT and Ladder Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Ladder Capital
The main advantage of trading using opposite OFFICE DEPOT and Ladder Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, Ladder Capital 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 Ladder Capital will offset losses from the drop in Ladder Capital's long position.| OFFICE DEPOT vs. ScanSource | OFFICE DEPOT vs. Global Ship Lease | OFFICE DEPOT vs. Wizz Air Holdings | OFFICE DEPOT vs. WILLIS LEASE FIN |
| Ladder Capital vs. Hisense Home Appliances | Ladder Capital vs. Corporate Office Properties | Ladder Capital vs. OFFICE DEPOT | Ladder Capital vs. OPERA SOFTWARE |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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