Correlation Between Cincinnati Financial and Argo Group
Can any of the company-specific risk be diversified away by investing in both Cincinnati Financial and Argo Group 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 Cincinnati Financial and Argo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cincinnati Financial and Argo Group International, you can compare the effects of market volatilities on Cincinnati Financial and Argo Group 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 Cincinnati Financial with a short position of Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cincinnati Financial and Argo Group.
Diversification Opportunities for Cincinnati Financial and Argo Group
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cincinnati and Argo is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cincinnati Financial and Argo Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group International and Cincinnati Financial 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 Cincinnati Financial are associated (or correlated) with Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group International has no effect on the direction of Cincinnati Financial i.e., Cincinnati Financial and Argo Group go up and down completely randomly.
Pair Corralation between Cincinnati Financial and Argo Group
Given the investment horizon of 90 days Cincinnati Financial is expected to under-perform the Argo Group. In addition to that, Cincinnati Financial is 12.62 times more volatile than Argo Group International. It trades about -0.05 of its total potential returns per unit of risk. Argo Group International is currently generating about 0.2 per unit of volatility. If you would invest 2,517 in Argo Group International on November 27, 2024 and sell it today you would earn a total of 12.00 from holding Argo Group International or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cincinnati Financial vs. Argo Group International
Performance |
| Timeline |
| Cincinnati Financial |
| Argo Group International |
Cincinnati Financial and Argo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cincinnati Financial and Argo Group
The main advantage of trading using opposite Cincinnati Financial and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cincinnati Financial position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.| Cincinnati Financial vs. Progressive Corp | Cincinnati Financial vs. The Travelers Companies | Cincinnati Financial vs. Chubb | Cincinnati Financial vs. W R Berkley |
| Argo Group vs. Life Time Group | Argo Group vs. Summit Hotel Properties | Argo Group vs. Hasbro Inc | Argo Group vs. Small Cap Premium |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |