Correlation Between Rithm Capital and Gaming Leisure
Can any of the company-specific risk be diversified away by investing in both Rithm Capital and Gaming Leisure 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 Rithm Capital and Gaming Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rithm Capital Corp and Gaming Leisure Properties, you can compare the effects of market volatilities on Rithm Capital and Gaming Leisure 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 Rithm Capital with a short position of Gaming Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Capital and Gaming Leisure.
Diversification Opportunities for Rithm Capital and Gaming Leisure
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rithm and Gaming is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Capital Corp and Gaming Leisure Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Leisure Properties and Rithm Capital 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 Rithm Capital Corp are associated (or correlated) with Gaming Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Leisure Properties has no effect on the direction of Rithm Capital i.e., Rithm Capital and Gaming Leisure go up and down completely randomly.
Pair Corralation between Rithm Capital and Gaming Leisure
Given the investment horizon of 90 days Rithm Capital Corp is expected to under-perform the Gaming Leisure. In addition to that, Rithm Capital is 1.04 times more volatile than Gaming Leisure Properties. It trades about -0.12 of its total potential returns per unit of risk. Gaming Leisure Properties is currently generating about -0.08 per unit of volatility. If you would invest 4,663 in Gaming Leisure Properties on August 21, 2025 and sell it today you would lose (281.00) from holding Gaming Leisure Properties or give up 6.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rithm Capital Corp vs. Gaming Leisure Properties
Performance |
| Timeline |
| Rithm Capital Corp |
| Gaming Leisure Properties |
Rithm Capital and Gaming Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Capital and Gaming Leisure
The main advantage of trading using opposite Rithm Capital and Gaming Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Capital position performs unexpectedly, Gaming Leisure 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 Gaming Leisure will offset losses from the drop in Gaming Leisure's long position.| Rithm Capital vs. Cherry Hill Mortgage | Rithm Capital vs. Manhattan Bridge Capital | Rithm Capital vs. AFC Gamma | Rithm Capital vs. Global Medical REIT |
| Gaming Leisure vs. Lamar Advertising | Gaming Leisure vs. Annaly Capital Management, | Gaming Leisure vs. Rithm Capital Corp | Gaming Leisure vs. American Homes 4 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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