Correlation Between Security National and Open Lending
Can any of the company-specific risk be diversified away by investing in both Security National and Open Lending 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 Open Lending 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 Open Lending Corp, you can compare the effects of market volatilities on Security National and Open Lending 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 Open Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security National and Open Lending.
Diversification Opportunities for Security National and Open Lending
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Security and Open is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Security National Financial and Open Lending Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open Lending Corp 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 Open Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open Lending Corp has no effect on the direction of Security National i.e., Security National and Open Lending go up and down completely randomly.
Pair Corralation between Security National and Open Lending
Assuming the 90 days horizon Security National Financial is expected to generate 0.47 times more return on investment than Open Lending. However, Security National Financial is 2.13 times less risky than Open Lending. It trades about -0.02 of its potential returns per unit of risk. Open Lending Corp is currently generating about -0.01 per unit of risk. If you would invest 900.00 in Security National Financial on August 29, 2025 and sell it today you would lose (30.00) from holding Security National Financial or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Security National Financial vs. Open Lending Corp
Performance |
| Timeline |
| Security National |
| Open Lending Corp |
Security National and Open Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security National and Open Lending
The main advantage of trading using opposite Security National and Open Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security National position performs unexpectedly, Open Lending 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 Open Lending will offset losses from the drop in Open Lending's long position.| Security National vs. Comtech Telecommunications Corp | Security National vs. Quality Online Education | Security National vs. ZhongAn Online P | Security National vs. Lamar Advertising |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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