Correlation Between Roman DBDR and Finance Of
Can any of the company-specific risk be diversified away by investing in both Roman DBDR and Finance Of 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 Roman DBDR and Finance Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roman DBDR Acquisition and Finance of America, you can compare the effects of market volatilities on Roman DBDR and Finance Of 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 Roman DBDR with a short position of Finance Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roman DBDR and Finance Of.
Diversification Opportunities for Roman DBDR and Finance Of
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Roman and Finance is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Roman DBDR Acquisition and Finance of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finance of America and Roman DBDR 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 Roman DBDR Acquisition are associated (or correlated) with Finance Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finance of America has no effect on the direction of Roman DBDR i.e., Roman DBDR and Finance Of go up and down completely randomly.
Pair Corralation between Roman DBDR and Finance Of
Given the investment horizon of 90 days Roman DBDR Acquisition is expected to generate 0.07 times more return on investment than Finance Of. However, Roman DBDR Acquisition is 14.88 times less risky than Finance Of. It trades about 0.13 of its potential returns per unit of risk. Finance of America is currently generating about -0.08 per unit of risk. If you would invest 1,029 in Roman DBDR Acquisition on August 25, 2025 and sell it today you would earn a total of 15.00 from holding Roman DBDR Acquisition or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roman DBDR Acquisition vs. Finance of America
Performance |
| Timeline |
| Roman DBDR Acquisition |
| Finance of America |
Roman DBDR and Finance Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roman DBDR and Finance Of
The main advantage of trading using opposite Roman DBDR and Finance Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roman DBDR position performs unexpectedly, Finance Of 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 Finance Of will offset losses from the drop in Finance Of's long position.| Roman DBDR vs. Drugs Made In | Roman DBDR vs. Plum Acquisition Corp | Roman DBDR vs. FACT II Acquisition | Roman DBDR vs. Sizzle Acquisition Corp |
| Finance Of vs. Yirendai | Finance Of vs. Medallion Financial Corp | Finance Of vs. Open Lending Corp | Finance Of vs. Oportun Financial Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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