Correlation Between Rithm Capital and 456837AM5
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By analyzing existing cross correlation between Rithm Capital Corp and ING Groep NV, you can compare the effects of market volatilities on Rithm Capital and 456837AM5 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 Rithm Capital with a short position of 456837AM5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Capital and 456837AM5.
Diversification Opportunities for Rithm Capital and 456837AM5
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rithm and 456837AM5 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Capital Corp and ING Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING Groep NV and Rithm 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 Rithm Capital Corp are associated (or correlated) with 456837AM5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING Groep NV has no effect on the direction of Rithm Capital i.e., Rithm Capital and 456837AM5 go up and down completely randomly.
Pair Corralation between Rithm Capital and 456837AM5
Assuming the 90 days trading horizon Rithm Capital Corp is expected to generate 0.4 times more return on investment than 456837AM5. However, Rithm Capital Corp is 2.5 times less risky than 456837AM5. It trades about 0.16 of its potential returns per unit of risk. ING Groep NV is currently generating about -0.15 per unit of risk. If you would invest 2,410 in Rithm Capital Corp on October 21, 2024 and sell it today you would earn a total of 86.00 from holding Rithm Capital Corp or generate 3.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 83.87% |
Values | Daily Returns |
Rithm Capital Corp vs. ING Groep NV
Performance |
Timeline |
Rithm Capital Corp |
ING Groep NV |
Rithm Capital and 456837AM5 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rithm Capital and 456837AM5
The main advantage of trading using opposite Rithm Capital and 456837AM5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Capital position performs unexpectedly, 456837AM5 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 456837AM5 will offset losses from the drop in 456837AM5's long position.Rithm Capital vs. ACRES Commercial Realty | ||
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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