Correlation Between Xp and Mr Cooper
Can any of the company-specific risk be diversified away by investing in both Xp and Mr Cooper 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 Xp and Mr Cooper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and Mr Cooper Group, you can compare the effects of market volatilities on Xp and Mr Cooper 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 Xp with a short position of Mr Cooper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and Mr Cooper.
Diversification Opportunities for Xp and Mr Cooper
Very good diversification
The 3 months correlation between Xp and COOP is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xp Inc and Mr Cooper Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mr Cooper Group and Xp 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 Xp Inc are associated (or correlated) with Mr Cooper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mr Cooper Group has no effect on the direction of Xp i.e., Xp and Mr Cooper go up and down completely randomly.
Pair Corralation between Xp and Mr Cooper
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the Mr Cooper. In addition to that, Xp is 1.37 times more volatile than Mr Cooper Group. It trades about -0.23 of its total potential returns per unit of risk. Mr Cooper Group is currently generating about 0.26 per unit of volatility. If you would invest 9,147 in Mr Cooper Group on August 27, 2024 and sell it today you would earn a total of 919.00 from holding Mr Cooper Group or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Inc vs. Mr Cooper Group
Performance |
| Timeline |
| Xp Inc |
| Mr Cooper Group |
Xp and Mr Cooper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp and Mr Cooper
The main advantage of trading using opposite Xp and Mr Cooper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp position performs unexpectedly, Mr Cooper 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 Mr Cooper will offset losses from the drop in Mr Cooper's long position.| Xp vs. Up Fintech Holding | Xp vs. Bit Digital | Xp vs. Marathon Digital Holdings | Xp vs. MarketAxess Holdings |
| Mr Cooper vs. National Bank Holdings | Mr Cooper vs. Community West Bancshares | Mr Cooper vs. Financial Institutions | Mr Cooper vs. Kearny Financial Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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