Correlation Between Altisource Portfolio and Impac Mortgage
Can any of the company-specific risk be diversified away by investing in both Altisource Portfolio and Impac Mortgage 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 Altisource Portfolio and Impac Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altisource Portfolio Solutions and Impac Mortgage Holdings, you can compare the effects of market volatilities on Altisource Portfolio and Impac Mortgage 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 Altisource Portfolio with a short position of Impac Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altisource Portfolio and Impac Mortgage.
Diversification Opportunities for Altisource Portfolio and Impac Mortgage
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Altisource and Impac is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Altisource Portfolio Solutions and Impac Mortgage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impac Mortgage Holdings and Altisource Portfolio 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 Altisource Portfolio Solutions are associated (or correlated) with Impac Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impac Mortgage Holdings has no effect on the direction of Altisource Portfolio i.e., Altisource Portfolio and Impac Mortgage go up and down completely randomly.
Pair Corralation between Altisource Portfolio and Impac Mortgage
If you would invest 148.00 in Altisource Portfolio Solutions on February 14, 2024 and sell it today you would earn a total of 42.00 from holding Altisource Portfolio Solutions or generate 28.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Altisource Portfolio Solutions vs. Impac Mortgage Holdings
Performance |
| Timeline |
| Altisource Portfolio |
| Impac Mortgage Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altisource Portfolio and Impac Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altisource Portfolio and Impac Mortgage
The main advantage of trading using opposite Altisource Portfolio and Impac Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altisource Portfolio position performs unexpectedly, Impac Mortgage 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 Impac Mortgage will offset losses from the drop in Impac Mortgage's long position.| Altisource Portfolio vs. New England Realty | Altisource Portfolio vs. Marcus Millichap | Altisource Portfolio vs. FirstService Corp | Altisource Portfolio vs. Maui Land Pineapple |
| Impac Mortgage vs. CNFinance Holdings | Impac Mortgage vs. Ocwen Financial | Impac Mortgage vs. Guild HoldingsCo | Impac Mortgage vs. PennyMac Finl Svcs |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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