Correlation Between OneMain Holdings and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both OneMain Holdings and Atlanticus Holdings 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 OneMain Holdings and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneMain Holdings and Atlanticus Holdings Corp, you can compare the effects of market volatilities on OneMain Holdings and Atlanticus Holdings 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 OneMain Holdings with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneMain Holdings and Atlanticus Holdings.
Diversification Opportunities for OneMain Holdings and Atlanticus Holdings
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OneMain and Atlanticus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding OneMain Holdings and Atlanticus Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings Corp and OneMain Holdings 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 OneMain Holdings are associated (or correlated) with Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings Corp has no effect on the direction of OneMain Holdings i.e., OneMain Holdings and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between OneMain Holdings and Atlanticus Holdings
Considering the 90-day investment horizon OneMain Holdings is expected to generate 1.91 times more return on investment than Atlanticus Holdings. However, OneMain Holdings is 1.91 times more volatile than Atlanticus Holdings Corp. It trades about 0.05 of its potential returns per unit of risk. Atlanticus Holdings Corp is currently generating about 0.04 per unit of risk. If you would invest 4,480 in OneMain Holdings on September 12, 2024 and sell it today you would earn a total of 1,079 from holding OneMain Holdings or generate 24.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneMain Holdings vs. Atlanticus Holdings Corp
Performance |
| Timeline |
| OneMain Holdings |
| Atlanticus Holdings Corp |
OneMain Holdings and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneMain Holdings and Atlanticus Holdings
The main advantage of trading using opposite OneMain Holdings and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneMain Holdings position performs unexpectedly, Atlanticus Holdings 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 Atlanticus Holdings will offset losses from the drop in Atlanticus Holdings' long position.| OneMain Holdings vs. Oaktree Specialty Lending | OneMain Holdings vs. Barings BDC | OneMain Holdings vs. Runway Growth Finance | OneMain Holdings vs. Ally Financial |
| Atlanticus Holdings vs. Babcock Wilcox Enterprises | Atlanticus Holdings vs. XOMA Corporation | Atlanticus Holdings vs. Brighthouse Financial |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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