Correlation Between Rithm Capital and Ecc Cap
Can any of the company-specific risk be diversified away by investing in both Rithm Capital and Ecc Cap 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 Ecc Cap 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 Ecc Cap Corp, you can compare the effects of market volatilities on Rithm Capital and Ecc Cap 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 Ecc Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Capital and Ecc Cap.
Diversification Opportunities for Rithm Capital and Ecc Cap
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rithm and Ecc is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Capital Corp and Ecc Cap Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecc Cap Corp 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 Ecc Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecc Cap Corp has no effect on the direction of Rithm Capital i.e., Rithm Capital and Ecc Cap go up and down completely randomly.
Pair Corralation between Rithm Capital and Ecc Cap
If you would invest 2,369 in Rithm Capital Corp on August 26, 2024 and sell it today you would earn a total of 58.00 from holding Rithm Capital Corp or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.27% |
| Values | Daily Returns |
Rithm Capital Corp vs. Ecc Cap Corp
Performance |
| Timeline |
| Rithm Capital Corp |
| Ecc Cap Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rithm Capital and Ecc Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Capital and Ecc Cap
The main advantage of trading using opposite Rithm Capital and Ecc Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Capital position performs unexpectedly, Ecc Cap 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 Ecc Cap will offset losses from the drop in Ecc Cap's long position.| Rithm Capital vs. Rithm Capital Corp | Rithm Capital vs. PennyMac Mortgage Investment | Rithm Capital vs. AGNC Investment Corp |
| Ecc Cap vs. Ready Capital Corp | Ecc Cap vs. Ellington Residential Mortgage | Ecc Cap vs. Ellington Financial | Ecc Cap vs. Dynex Capital |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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