Correlation Between OneMain Holdings and Old Market
Can any of the company-specific risk be diversified away by investing in both OneMain Holdings and Old Market 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 OneMain Holdings and Old Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneMain Holdings and Old Market Capital, you can compare the effects of market volatilities on OneMain Holdings and Old Market 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 OneMain Holdings with a short position of Old Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneMain Holdings and Old Market.
Diversification Opportunities for OneMain Holdings and Old Market
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between OneMain and Old is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding OneMain Holdings and Old Market Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Market Capital and OneMain 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 OneMain Holdings are associated (or correlated) with Old Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Market Capital has no effect on the direction of OneMain Holdings i.e., OneMain Holdings and Old Market go up and down completely randomly.
Pair Corralation between OneMain Holdings and Old Market
Considering the 90-day investment horizon OneMain Holdings is expected to under-perform the Old Market. But the stock apears to be less risky and, when comparing its historical volatility, OneMain Holdings is 1.19 times less risky than Old Market. The stock trades about -0.07 of its potential returns per unit of risk. The Old Market Capital is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 590.00 in Old Market Capital on December 4, 2024 and sell it today you would earn a total of 60.00 from holding Old Market Capital or generate 10.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
OneMain Holdings vs. Old Market Capital
Performance |
Timeline |
OneMain Holdings |
Old Market Capital |
OneMain Holdings and Old Market Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OneMain Holdings and Old Market
The main advantage of trading using opposite OneMain Holdings and Old Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneMain Holdings position performs unexpectedly, Old Market 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 Old Market will offset losses from the drop in Old Market's long position.OneMain Holdings vs. Oaktree Specialty Lending | OneMain Holdings vs. Barings BDC | OneMain Holdings vs. Runway Growth Finance | OneMain Holdings vs. Ally Financial |
Old Market vs. Eerly Govt Ppty | Old Market vs. Rocky Brands | Old Market vs. Procter Gamble | Old Market vs. Envista Holdings 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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