Correlation Between Security National and Mr Cooper
Can any of the company-specific risk be diversified away by investing in both Security National and Mr Cooper 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 Security National and Mr Cooper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security National Financial and Mr Cooper Group, you can compare the effects of market volatilities on Security National and Mr Cooper 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 Security National with a short position of Mr Cooper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security National and Mr Cooper.
Diversification Opportunities for Security National and Mr Cooper
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Security and COOP is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Security National Financial and Mr Cooper Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mr Cooper Group and Security National 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 Security National Financial are associated (or correlated) with Mr Cooper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mr Cooper Group has no effect on the direction of Security National i.e., Security National and Mr Cooper go up and down completely randomly.
Pair Corralation between Security National and Mr Cooper
Assuming the 90 days horizon Security National Financial is expected to under-perform the Mr Cooper. But the stock apears to be less risky and, when comparing its historical volatility, Security National Financial is 1.29 times less risky than Mr Cooper. The stock trades about -0.14 of its potential returns per unit of risk. The Mr Cooper Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 10,730 in Mr Cooper Group on March 23, 2025 and sell it today you would earn a total of 4,182 from holding Mr Cooper Group or generate 38.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Security National Financial vs. Mr Cooper Group
Performance |
| Timeline |
| Security National |
| Mr Cooper Group |
Security National and Mr Cooper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security National and Mr Cooper
The main advantage of trading using opposite Security National and Mr Cooper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security National position performs unexpectedly, Mr Cooper 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 Mr Cooper will offset losses from the drop in Mr Cooper's long position.| Security National vs. Guild Holdings Co | Security National vs. Encore Capital Group | Security National vs. PennyMac Finl Svcs | Security National vs. CNFinance Holdings |
| Mr Cooper vs. Guild Holdings Co | Mr Cooper vs. Encore Capital Group | Mr Cooper vs. CNFinance Holdings | Mr Cooper vs. Velocity Financial Llc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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