Correlation Between OPERA SOFTWARE and Ladder Capital
Can any of the company-specific risk be diversified away by investing in both OPERA SOFTWARE 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 OPERA SOFTWARE and Ladder Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPERA SOFTWARE and Ladder Capital Corp, you can compare the effects of market volatilities on OPERA SOFTWARE 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 OPERA SOFTWARE with a short position of Ladder Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPERA SOFTWARE and Ladder Capital.
Diversification Opportunities for OPERA SOFTWARE and Ladder Capital
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between OPERA and Ladder is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding OPERA SOFTWARE 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 OPERA SOFTWARE 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 OPERA SOFTWARE 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 OPERA SOFTWARE i.e., OPERA SOFTWARE and Ladder Capital go up and down completely randomly.
Pair Corralation between OPERA SOFTWARE and Ladder Capital
Assuming the 90 days trading horizon OPERA SOFTWARE is expected to generate 1.03 times more return on investment than Ladder Capital. However, OPERA SOFTWARE is 1.03 times more volatile than Ladder Capital Corp. It trades about 0.01 of its potential returns per unit of risk. Ladder Capital Corp is currently generating about -0.2 per unit of risk. If you would invest 64.00 in OPERA SOFTWARE on October 14, 2024 and sell it today you would earn a total of 0.00 from holding OPERA SOFTWARE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPERA SOFTWARE vs. Ladder Capital Corp
Performance |
| Timeline |
| OPERA SOFTWARE |
| Ladder Capital Corp |
OPERA SOFTWARE and Ladder Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPERA SOFTWARE and Ladder Capital
The main advantage of trading using opposite OPERA SOFTWARE and Ladder Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPERA SOFTWARE 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.| OPERA SOFTWARE vs. Insurance Australia Group | OPERA SOFTWARE vs. Keck Seng Investments | OPERA SOFTWARE vs. CHRYSALIS INVESTMENTS LTD | OPERA SOFTWARE vs. Japan Post Insurance |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |