Correlation Between Sachem Capital and Rithm Property
Can any of the company-specific risk be diversified away by investing in both Sachem Capital and Rithm Property 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 Sachem Capital and Rithm Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sachem Capital Corp and Rithm Property Trust, you can compare the effects of market volatilities on Sachem Capital and Rithm Property 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 Sachem Capital with a short position of Rithm Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sachem Capital and Rithm Property.
Diversification Opportunities for Sachem Capital and Rithm Property
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sachem and Rithm is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sachem Capital Corp and Rithm Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rithm Property Trust and Sachem 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 Sachem Capital Corp are associated (or correlated) with Rithm Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rithm Property Trust has no effect on the direction of Sachem Capital i.e., Sachem Capital and Rithm Property go up and down completely randomly.
Pair Corralation between Sachem Capital and Rithm Property
Assuming the 90 days trading horizon Sachem Capital Corp is expected to under-perform the Rithm Property. In addition to that, Sachem Capital is 1.87 times more volatile than Rithm Property Trust. It trades about -0.34 of its total potential returns per unit of risk. Rithm Property Trust is currently generating about -0.05 per unit of volatility. If you would invest 301.00 in Rithm Property Trust on September 12, 2024 and sell it today you would lose (4.00) from holding Rithm Property Trust or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sachem Capital Corp vs. Rithm Property Trust
Performance |
| Timeline |
| Sachem Capital Corp |
| Rithm Property Trust |
Sachem Capital and Rithm Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sachem Capital and Rithm Property
The main advantage of trading using opposite Sachem Capital and Rithm Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sachem Capital position performs unexpectedly, Rithm Property 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 Rithm Property will offset losses from the drop in Rithm Property's long position.| Sachem Capital vs. SiriusPoint | Sachem Capital vs. Harrow Health 8625 | Sachem Capital vs. XOMA Corporation | Sachem Capital vs. New York Mortgage |
| Rithm Property vs. Urban Edge Properties | Rithm Property vs. Kite Realty Group | Rithm Property vs. Retail Opportunity Investments | Rithm Property vs. Inventrust Properties 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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