Correlation Between Chimera Investment and Rithm Property

Can any of the company-specific risk be diversified away by investing in both Chimera Investment and Rithm Property 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 Chimera Investment and Rithm Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chimera Investment and Rithm Property Trust, you can compare the effects of market volatilities on Chimera Investment and Rithm Property 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 Chimera Investment with a short position of Rithm Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chimera Investment and Rithm Property.

Diversification Opportunities for Chimera Investment and Rithm Property

-0.23

Correlation Coefficient

Chimera Investment  Rithm Property

Very good diversification

The 3 months correlation between Chimera and Rithm is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Chimera Investment and Rithm Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rithm Property Trust and Chimera Investment 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 Chimera Investment are associated (or correlated) with Rithm Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rithm Property Trust has no effect on the direction of Chimera Investment i.e., Chimera Investment and Rithm Property go up and down completely randomly.

Pair Corralation between Chimera Investment and Rithm Property

Assuming the 90 days trading horizon Chimera Investment is expected to generate 0.45 times more return on investment than Rithm Property. However, Chimera Investment is 2.2 times less risky than Rithm Property. It trades about 0.07 of its potential returns per unit of risk. Rithm Property Trust is currently generating about -0.06 per unit of risk. If you would invest  2,152  in Chimera Investment on May 5, 2025 and sell it today you would earn a total of  66.00  from holding Chimera Investment or generate 3.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Chimera Investment  vs.  Rithm Property Trust

Chimera Investment

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Chimera Investment are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, Chimera Investment is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Rithm Property Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rithm Property Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Rithm Property is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Chimera Investment and Rithm Property

The main advantage of trading using opposite Chimera Investment and Rithm Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chimera Investment position performs unexpectedly, Rithm Property 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 Rithm Property will offset losses from the drop in Rithm Property's long position.

The idea behind Chimera Investment and Rithm Property Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.