Correlation Between Rithm Capital and Equity Lifestyle

Can any of the company-specific risk be diversified away by investing in both Rithm Capital and Equity Lifestyle 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 Equity Lifestyle 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 Equity Lifestyle Properties, you can compare the effects of market volatilities on Rithm Capital and Equity Lifestyle 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 Equity Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Capital and Equity Lifestyle.

Diversification Opportunities for Rithm Capital and Equity Lifestyle

-0.44

Correlation Coefficient

Rithm Capital  Equity Lifestyle

Very good diversification

The 3 months correlation between Rithm and Equity is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Capital Corp and Equity Lifestyle Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Lifestyle Pro 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 Equity Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Lifestyle Pro has no effect on the direction of Rithm Capital i.e., Rithm Capital and Equity Lifestyle go up and down completely randomly.

Pair Corralation between Rithm Capital and Equity Lifestyle

Given the investment horizon of 90 days Rithm Capital Corp is expected to generate 1.62 times more return on investment than Equity Lifestyle. However, Rithm Capital is 1.62 times more volatile than Equity Lifestyle Properties. It trades about 0.01 of its potential returns per unit of risk. Equity Lifestyle Properties is currently generating about -0.02 per unit of risk. If you would invest  1,105  in Rithm Capital Corp on September 9, 2025 and sell it today you would earn a total of  2.00  from holding Rithm Capital Corp or generate 0.18% return on investment over 90 days.

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

Rithm Capital Corp  vs.  Equity Lifestyle Properties

Rithm Capital Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Rithm Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Equity Lifestyle Pro

Risk-Adjusted Performance

Weak

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

Pair Trading with Rithm Capital and Equity Lifestyle

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

The idea behind Rithm Capital Corp and Equity Lifestyle Properties 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.