Correlation Between UWM Holdings and Greystone Housing
Can any of the company-specific risk be diversified away by investing in both UWM Holdings and Greystone Housing 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 UWM Holdings and Greystone Housing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UWM Holdings Corp and Greystone Housing Impact, you can compare the effects of market volatilities on UWM Holdings and Greystone Housing 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 UWM Holdings with a short position of Greystone Housing. Check out your portfolio center. Please also check ongoing floating volatility patterns of UWM Holdings and Greystone Housing.
Diversification Opportunities for UWM Holdings and Greystone Housing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UWM and Greystone is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding UWM Holdings Corp and Greystone Housing Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greystone Housing Impact and UWM Holdings 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 UWM Holdings Corp are associated (or correlated) with Greystone Housing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greystone Housing Impact has no effect on the direction of UWM Holdings i.e., UWM Holdings and Greystone Housing go up and down completely randomly.
Pair Corralation between UWM Holdings and Greystone Housing
Given the investment horizon of 90 days UWM Holdings Corp is expected to generate 1.19 times more return on investment than Greystone Housing. However, UWM Holdings is 1.19 times more volatile than Greystone Housing Impact. It trades about 0.02 of its potential returns per unit of risk. Greystone Housing Impact is currently generating about -0.03 per unit of risk. If you would invest 654.00 in UWM Holdings Corp on August 30, 2024 and sell it today you would earn a total of 2.00 from holding UWM Holdings Corp or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UWM Holdings Corp vs. Greystone Housing Impact
Performance |
| Timeline |
| UWM Holdings Corp |
| Greystone Housing Impact |
UWM Holdings and Greystone Housing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UWM Holdings and Greystone Housing
The main advantage of trading using opposite UWM Holdings and Greystone Housing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UWM Holdings position performs unexpectedly, Greystone Housing 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 Greystone Housing will offset losses from the drop in Greystone Housing's long position.| UWM Holdings vs. Loandepot | UWM Holdings vs. Mr Cooper Group | UWM Holdings vs. PennyMac Finl Svcs | UWM Holdings vs. Walker Dunlop |
| Greystone Housing vs. Guild Holdings Co | Greystone Housing vs. Security National Financial | Greystone Housing vs. Encore Capital Group | Greystone Housing vs. PennyMac Finl Svcs |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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