Correlation Between Better Home and Radian
Can any of the company-specific risk be diversified away by investing in both Better Home and Radian 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 Better Home and Radian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Better Home Finance and Radian Group, you can compare the effects of market volatilities on Better Home and Radian 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 Better Home with a short position of Radian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Better Home and Radian.
Diversification Opportunities for Better Home and Radian
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Better and Radian is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Better Home Finance and Radian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radian Group and Better Home 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 Better Home Finance are associated (or correlated) with Radian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radian Group has no effect on the direction of Better Home i.e., Better Home and Radian go up and down completely randomly.
Pair Corralation between Better Home and Radian
Given the investment horizon of 90 days Better Home Finance is expected to generate 7.41 times more return on investment than Radian. However, Better Home is 7.41 times more volatile than Radian Group. It trades about 0.15 of its potential returns per unit of risk. Radian Group is currently generating about 0.02 per unit of risk. If you would invest 2,461 in Better Home Finance on September 11, 2025 and sell it today you would earn a total of 2,602 from holding Better Home Finance or generate 105.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Better Home Finance vs. Radian Group
Performance |
| Timeline |
| Better Home Finance |
| Radian Group |
Better Home and Radian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Better Home and Radian
The main advantage of trading using opposite Better Home and Radian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Better Home position performs unexpectedly, Radian 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 Radian will offset losses from the drop in Radian's long position.| Better Home vs. Loandepot | Better Home vs. Encore Capital Group | Better Home vs. Bit Digital | Better Home vs. Guild Holdings Co |
| Radian vs. Enact Holdings | Radian vs. Assured Guaranty | Radian vs. Essent Group | Radian vs. Selective Insurance Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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