Correlation Between Rithm Capital and Scentre
Can any of the company-specific risk be diversified away by investing in both Rithm Capital and Scentre 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 Scentre 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 Scentre Group, you can compare the effects of market volatilities on Rithm Capital and Scentre 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 Scentre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Capital and Scentre.
Diversification Opportunities for Rithm Capital and Scentre
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rithm and Scentre is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Capital Corp and Scentre Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scentre Group 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 Scentre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scentre Group has no effect on the direction of Rithm Capital i.e., Rithm Capital and Scentre go up and down completely randomly.
Pair Corralation between Rithm Capital and Scentre
Assuming the 90 days trading horizon Rithm Capital Corp is expected to generate 0.23 times more return on investment than Scentre. However, Rithm Capital Corp is 4.29 times less risky than Scentre. It trades about 0.3 of its potential returns per unit of risk. Scentre Group is currently generating about -0.24 per unit of risk. If you would invest 2,462 in Rithm Capital Corp on October 25, 2024 and sell it today you would earn a total of 41.00 from holding Rithm Capital Corp or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rithm Capital Corp vs. Scentre Group
Performance |
| Timeline |
| Rithm Capital Corp |
| Scentre Group |
Rithm Capital and Scentre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Capital and Scentre
The main advantage of trading using opposite Rithm Capital and Scentre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Capital position performs unexpectedly, Scentre 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 Scentre will offset losses from the drop in Scentre'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 |
| Scentre vs. Mapletree Commercial Trust | Scentre vs. Retail Opportunity Investments | Scentre vs. Kimco Realty |
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.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |