Correlation Between Rithm Capital and Chicago Atlantic
Can any of the company-specific risk be diversified away by investing in both Rithm Capital and Chicago Atlantic 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 Rithm Capital and Chicago Atlantic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rithm Capital Corp and Chicago Atlantic Real, you can compare the effects of market volatilities on Rithm Capital and Chicago Atlantic 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 Rithm Capital with a short position of Chicago Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Capital and Chicago Atlantic.
Diversification Opportunities for Rithm Capital and Chicago Atlantic
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rithm and Chicago is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Capital Corp and Chicago Atlantic Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicago Atlantic Real and Rithm Capital 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 Rithm Capital Corp are associated (or correlated) with Chicago Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicago Atlantic Real has no effect on the direction of Rithm Capital i.e., Rithm Capital and Chicago Atlantic go up and down completely randomly.
Pair Corralation between Rithm Capital and Chicago Atlantic
Assuming the 90 days trading horizon Rithm Capital Corp is expected to generate 0.72 times more return on investment than Chicago Atlantic. However, Rithm Capital Corp is 1.39 times less risky than Chicago Atlantic. It trades about 0.09 of its potential returns per unit of risk. Chicago Atlantic Real is currently generating about 0.05 per unit of risk. If you would invest 1,735 in Rithm Capital Corp on August 23, 2024 and sell it today you would earn a total of 794.00 from holding Rithm Capital Corp or generate 45.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rithm Capital Corp vs. Chicago Atlantic Real
Performance |
| Timeline |
| Rithm Capital Corp |
| Chicago Atlantic Real |
Rithm Capital and Chicago Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Capital and Chicago Atlantic
The main advantage of trading using opposite Rithm Capital and Chicago Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Capital position performs unexpectedly, Chicago Atlantic 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 Chicago Atlantic will offset losses from the drop in Chicago Atlantic's long position.| Rithm Capital vs. Rithm Capital Corp | Rithm Capital vs. Rithm Capital Corp | Rithm Capital vs. Rithm Capital Corp | Rithm Capital vs. PennyMac Mortgage Investment |
| Chicago Atlantic vs. KKR Real Estate | Chicago Atlantic vs. Ellington Residential Mortgage | Chicago Atlantic vs. Claros Mortgage Trust | Chicago Atlantic vs. Great Ajax Corp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |