Correlation Between Timbercreek Financial and OCN Old
Can any of the company-specific risk be diversified away by investing in both Timbercreek Financial and OCN Old 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 Timbercreek Financial and OCN Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timbercreek Financial Corp and OCN Old, you can compare the effects of market volatilities on Timbercreek Financial and OCN Old 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 Timbercreek Financial with a short position of OCN Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timbercreek Financial and OCN Old.
Diversification Opportunities for Timbercreek Financial and OCN Old
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Timbercreek and OCN is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Timbercreek Financial Corp and OCN Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCN Old and Timbercreek Financial 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 Timbercreek Financial Corp are associated (or correlated) with OCN Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCN Old has no effect on the direction of Timbercreek Financial i.e., Timbercreek Financial and OCN Old go up and down completely randomly.
Pair Corralation between Timbercreek Financial and OCN Old
If you would invest 3,494 in OCN Old on October 20, 2024 and sell it today you would earn a total of 0.00 from holding OCN Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Timbercreek Financial Corp vs. OCN Old
Performance |
| Timeline |
| Timbercreek Financial |
| OCN Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Timbercreek Financial and OCN Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timbercreek Financial and OCN Old
The main advantage of trading using opposite Timbercreek Financial and OCN Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timbercreek Financial position performs unexpectedly, OCN Old 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 OCN Old will offset losses from the drop in OCN Old's long position.| Timbercreek Financial vs. PennyMac Finl Svcs | Timbercreek Financial vs. Encore Capital Group | Timbercreek Financial vs. Rocket Companies | Timbercreek Financial vs. Loandepot |
| OCN Old vs. CNFinance Holdings | OCN Old vs. Security National Financial | OCN Old vs. Encore Capital Group | OCN Old vs. Guild Holdings Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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