Correlation Between BRP Old and Crawford
Can any of the company-specific risk be diversified away by investing in both BRP Old and Crawford 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 BRP Old and Crawford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRP Old and Crawford Company, you can compare the effects of market volatilities on BRP Old and Crawford 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 BRP Old with a short position of Crawford. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRP Old and Crawford.
Diversification Opportunities for BRP Old and Crawford
Weak diversification
The 3 months correlation between BRP and Crawford is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding BRP Old and Crawford Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford and BRP Old 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 BRP Old are associated (or correlated) with Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford has no effect on the direction of BRP Old i.e., BRP Old and Crawford go up and down completely randomly.
Pair Corralation between BRP Old and Crawford
If you would invest 1,163 in Crawford Company on November 1, 2024 and sell it today you would earn a total of 37.00 from holding Crawford Company or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
BRP Old vs. Crawford Company
Performance |
| Timeline |
| BRP Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Crawford |
BRP Old and Crawford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRP Old and Crawford
The main advantage of trading using opposite BRP Old and Crawford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRP Old position performs unexpectedly, Crawford 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 Crawford will offset losses from the drop in Crawford's long position.| BRP Old vs. Arthur J Gallagher | BRP Old vs. Marsh McLennan Companies | BRP Old vs. Willis Towers Watson | BRP Old vs. Erie Indemnity |
| Crawford vs. CorVel Corp | Crawford vs. Erie Indemnity | Crawford vs. Willis Towers Watson | Crawford vs. Huize Holding |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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