Correlation Between TIMBERCREEK FINL and ELLINGTON FINL
Can any of the company-specific risk be diversified away by investing in both TIMBERCREEK FINL and ELLINGTON FINL 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 TIMBERCREEK FINL and ELLINGTON FINL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIMBERCREEK FINL and ELLINGTON FINL INC, you can compare the effects of market volatilities on TIMBERCREEK FINL and ELLINGTON FINL 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 TIMBERCREEK FINL with a short position of ELLINGTON FINL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIMBERCREEK FINL and ELLINGTON FINL.
Diversification Opportunities for TIMBERCREEK FINL and ELLINGTON FINL
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between TIMBERCREEK and ELLINGTON is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding TIMBERCREEK FINL and ELLINGTON FINL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELLINGTON FINL INC and TIMBERCREEK FINL 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 TIMBERCREEK FINL are associated (or correlated) with ELLINGTON FINL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELLINGTON FINL INC has no effect on the direction of TIMBERCREEK FINL i.e., TIMBERCREEK FINL and ELLINGTON FINL go up and down completely randomly.
Pair Corralation between TIMBERCREEK FINL and ELLINGTON FINL
Assuming the 90 days horizon TIMBERCREEK FINL is expected to under-perform the ELLINGTON FINL. In addition to that, TIMBERCREEK FINL is 2.48 times more volatile than ELLINGTON FINL INC. It trades about -0.04 of its total potential returns per unit of risk. ELLINGTON FINL INC is currently generating about 0.08 per unit of volatility. If you would invest 1,111 in ELLINGTON FINL INC on September 25, 2024 and sell it today you would earn a total of 49.00 from holding ELLINGTON FINL INC or generate 4.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TIMBERCREEK FINL vs. ELLINGTON FINL INC
Performance |
Timeline |
TIMBERCREEK FINL |
ELLINGTON FINL INC |
TIMBERCREEK FINL and ELLINGTON FINL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TIMBERCREEK FINL and ELLINGTON FINL
The main advantage of trading using opposite TIMBERCREEK FINL and ELLINGTON FINL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIMBERCREEK FINL position performs unexpectedly, ELLINGTON FINL 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 ELLINGTON FINL will offset losses from the drop in ELLINGTON FINL's long position.TIMBERCREEK FINL vs. Mr Cooper Group | TIMBERCREEK FINL vs. OSB GROUP PLC | TIMBERCREEK FINL vs. FIRST NATIONAL FIN | TIMBERCREEK FINL vs. Deutsche Pfandbriefbank AG |
ELLINGTON FINL vs. Mr Cooper Group | ELLINGTON FINL vs. OSB GROUP PLC | ELLINGTON FINL vs. FIRST NATIONAL FIN | ELLINGTON FINL vs. Deutsche Pfandbriefbank AG |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |