Correlation Between UWM Holdings and Source Capital
Can any of the company-specific risk be diversified away by investing in both UWM Holdings and Source Capital 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 Source Capital 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 Source Capital Closed, you can compare the effects of market volatilities on UWM Holdings and Source Capital 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 Source Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of UWM Holdings and Source Capital.
Diversification Opportunities for UWM Holdings and Source Capital
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UWM and Source is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding UWM Holdings Corp and Source Capital Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Source Capital Closed 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 Source Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Source Capital Closed has no effect on the direction of UWM Holdings i.e., UWM Holdings and Source Capital go up and down completely randomly.
Pair Corralation between UWM Holdings and Source Capital
Given the investment horizon of 90 days UWM Holdings Corp is expected to generate 2.15 times more return on investment than Source Capital. However, UWM Holdings is 2.15 times more volatile than Source Capital Closed. It trades about 0.05 of its potential returns per unit of risk. Source Capital Closed is currently generating about 0.05 per unit of risk. If you would invest 364.00 in UWM Holdings Corp on November 1, 2024 and sell it today you would earn a total of 270.00 from holding UWM Holdings Corp or generate 74.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
UWM Holdings Corp vs. Source Capital Closed
Performance |
| Timeline |
| UWM Holdings Corp |
| Source Capital Closed |
UWM Holdings and Source Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UWM Holdings and Source Capital
The main advantage of trading using opposite UWM Holdings and Source Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UWM Holdings position performs unexpectedly, Source Capital 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 Source Capital will offset losses from the drop in Source Capital's long position.| UWM Holdings vs. Loandepot | UWM Holdings vs. Mr Cooper Group | UWM Holdings vs. PennyMac Finl Svcs | UWM Holdings vs. Walker Dunlop |
| Source Capital vs. DTF Tax Free | Source Capital vs. MFS Investment Grade | Source Capital vs. Eaton Vance National | Source Capital vs. Nuveen California Select |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |