Correlation Between Brockhaus Capital and Markel
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital and Markel 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 Brockhaus Capital and Markel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and Markel, you can compare the effects of market volatilities on Brockhaus Capital and Markel 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 Brockhaus Capital with a short position of Markel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and Markel.
Diversification Opportunities for Brockhaus Capital and Markel
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brockhaus and Markel is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and Markel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel and Brockhaus 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 Brockhaus Capital Management are associated (or correlated) with Markel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and Markel go up and down completely randomly.
Pair Corralation between Brockhaus Capital and Markel
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to generate 1.79 times more return on investment than Markel. However, Brockhaus Capital is 1.79 times more volatile than Markel. It trades about 0.02 of its potential returns per unit of risk. Markel is currently generating about 0.04 per unit of risk. If you would invest 2,036 in Brockhaus Capital Management on October 7, 2024 and sell it today you would earn a total of 314.00 from holding Brockhaus Capital Management or generate 15.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. Markel
Performance |
| Timeline |
| Brockhaus Capital |
| Markel |
Brockhaus Capital and Markel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and Markel
The main advantage of trading using opposite Brockhaus Capital and Markel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital position performs unexpectedly, Markel 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 Markel will offset losses from the drop in Markel's long position.| Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. NMI Holdings |
| Markel vs. PICC Property and | Markel vs. QBE Insurance Group | Markel vs. Superior Plus Corp | Markel vs. NMI Holdings |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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