Correlation Between Sezzle and Regional Management
Can any of the company-specific risk be diversified away by investing in both Sezzle and Regional Management 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 Sezzle and Regional Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sezzle Inc and Regional Management Corp, you can compare the effects of market volatilities on Sezzle and Regional Management 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 Sezzle with a short position of Regional Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sezzle and Regional Management.
Diversification Opportunities for Sezzle and Regional Management
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sezzle and Regional is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sezzle Inc and Regional Management Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Management Corp and Sezzle 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 Sezzle Inc are associated (or correlated) with Regional Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Management Corp has no effect on the direction of Sezzle i.e., Sezzle and Regional Management go up and down completely randomly.
Pair Corralation between Sezzle and Regional Management
If you would invest 2,914 in Regional Management Corp on September 5, 2024 and sell it today you would earn a total of 313.00 from holding Regional Management Corp or generate 10.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Sezzle Inc vs. Regional Management Corp
Performance |
Timeline |
Sezzle Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Regional Management Corp |
Sezzle and Regional Management Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sezzle and Regional Management
The main advantage of trading using opposite Sezzle and Regional Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sezzle position performs unexpectedly, Regional Management 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 Regional Management will offset losses from the drop in Regional Management's long position.Sezzle vs. Cosmos Group Holdings | Sezzle vs. Regional Management Corp | Sezzle vs. Enova International | Sezzle vs. Zip Co Limited |
Regional Management vs. 360 Finance | Regional Management vs. Enova International | Regional Management vs. Navient Corp | Regional Management vs. Sentage Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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