Correlation Between Victory Capital and UWM Holdings
Can any of the company-specific risk be diversified away by investing in both Victory Capital and UWM Holdings 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 UWM Holdings 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 UWM Holdings Corp, you can compare the effects of market volatilities on Victory Capital and UWM Holdings 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 UWM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Capital and UWM Holdings.
Diversification Opportunities for Victory Capital and UWM Holdings
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victory and UWM is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Victory Capital Holdings and UWM Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UWM Holdings 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 UWM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UWM Holdings Corp has no effect on the direction of Victory Capital i.e., Victory Capital and UWM Holdings go up and down completely randomly.
Pair Corralation between Victory Capital and UWM Holdings
Given the investment horizon of 90 days Victory Capital Holdings is expected to generate 1.18 times more return on investment than UWM Holdings. However, Victory Capital is 1.18 times more volatile than UWM Holdings Corp. It trades about 0.2 of its potential returns per unit of risk. UWM Holdings Corp is currently generating about -0.12 per unit of risk. If you would invest 6,058 in Victory Capital Holdings on August 27, 2024 and sell it today you would earn a total of 778.00 from holding Victory Capital Holdings or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Capital Holdings vs. UWM Holdings Corp
Performance |
| Timeline |
| Victory Capital Holdings |
| UWM Holdings Corp |
Victory Capital and UWM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Capital and UWM Holdings
The main advantage of trading using opposite Victory Capital and UWM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Capital position performs unexpectedly, UWM Holdings 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 UWM Holdings will offset losses from the drop in UWM Holdings' 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 |
| UWM Holdings vs. Loandepot | UWM Holdings vs. Mr Cooper Group | UWM Holdings vs. PennyMac Finl Svcs | UWM Holdings vs. Walker Dunlop |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |