Correlation Between Victory Capital and Rithm Capital
Can any of the company-specific risk be diversified away by investing in both Victory Capital and Rithm 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 Victory Capital and Rithm Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Capital Holdings and Rithm Capital Corp, you can compare the effects of market volatilities on Victory Capital and Rithm 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 Victory Capital with a short position of Rithm Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Capital and Rithm Capital.
Diversification Opportunities for Victory Capital and Rithm Capital
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victory and Rithm is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Victory Capital Holdings and Rithm Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rithm Capital Corp and Victory 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 Victory Capital Holdings are associated (or correlated) with Rithm Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rithm Capital Corp has no effect on the direction of Victory Capital i.e., Victory Capital and Rithm Capital go up and down completely randomly.
Pair Corralation between Victory Capital and Rithm Capital
Given the investment horizon of 90 days Victory Capital Holdings is expected to generate 1.32 times more return on investment than Rithm Capital. However, Victory Capital is 1.32 times more volatile than Rithm Capital Corp. It trades about 0.11 of its potential returns per unit of risk. Rithm Capital Corp is currently generating about 0.07 per unit of risk. If you would invest 2,740 in Victory Capital Holdings on August 24, 2024 and sell it today you would earn a total of 4,110 from holding Victory Capital Holdings or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Capital Holdings vs. Rithm Capital Corp
Performance |
| Timeline |
| Victory Capital Holdings |
| Rithm Capital Corp |
Victory Capital and Rithm Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Capital and Rithm Capital
The main advantage of trading using opposite Victory Capital and Rithm Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Capital position performs unexpectedly, Rithm 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 Rithm Capital will offset losses from the drop in Rithm Capital's long position.| Victory Capital vs. Federated Premier Municipal | Victory Capital vs. Blackrock Muniyield | Victory Capital vs. Diamond Hill Investment | Victory Capital vs. NXG NextGen Infrastructure |
| Rithm Capital vs. Starwood Property Trust | Rithm Capital vs. AGNC Investment Corp | Rithm Capital vs. Blackstone Mortgage Trust | Rithm Capital vs. Ares Commercial Real |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |