Correlation Between Analog Devices and CINCINNATI
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By analyzing existing cross correlation between Analog Devices and CINCINNATI FINL P, you can compare the effects of market volatilities on Analog Devices and CINCINNATI 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 Analog Devices with a short position of CINCINNATI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and CINCINNATI.
Diversification Opportunities for Analog Devices and CINCINNATI
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Analog and CINCINNATI is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and CINCINNATI FINL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CINCINNATI FINL P and Analog Devices 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 Analog Devices are associated (or correlated) with CINCINNATI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CINCINNATI FINL P has no effect on the direction of Analog Devices i.e., Analog Devices and CINCINNATI go up and down completely randomly.
Pair Corralation between Analog Devices and CINCINNATI
Considering the 90-day investment horizon Analog Devices is expected to generate 4.85 times more return on investment than CINCINNATI. However, Analog Devices is 4.85 times more volatile than CINCINNATI FINL P. It trades about 0.01 of its potential returns per unit of risk. CINCINNATI FINL P is currently generating about -0.14 per unit of risk. If you would invest 21,871 in Analog Devices on September 3, 2024 and sell it today you would lose (66.00) from holding Analog Devices or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 78.13% |
| Values | Daily Returns |
Analog Devices vs. CINCINNATI FINL P
Performance |
| Timeline |
| Analog Devices |
| CINCINNATI FINL P |
Analog Devices and CINCINNATI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analog Devices and CINCINNATI
The main advantage of trading using opposite Analog Devices and CINCINNATI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices position performs unexpectedly, CINCINNATI 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 CINCINNATI will offset losses from the drop in CINCINNATI's long position.| Analog Devices vs. Silicon Motion Technology | Analog Devices vs. ASE Industrial Holding | Analog Devices vs. SemiLEDS | Analog Devices vs. Himax Technologies |
| CINCINNATI vs. Nextnav Acquisition Corp | CINCINNATI vs. Hafnia Limited | CINCINNATI vs. Analog Devices | CINCINNATI vs. NextNav Warrant |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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