Correlation Between Cincinnati Financial and 12654AAA9
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By analyzing existing cross correlation between Cincinnati Financial and US12654AAA97, you can compare the effects of market volatilities on Cincinnati Financial and 12654AAA9 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 12654AAA9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cincinnati Financial and 12654AAA9.
Diversification Opportunities for Cincinnati Financial and 12654AAA9
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cincinnati and 12654AAA9 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cincinnati Financial and US12654AAA97 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US12654AAA97 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 12654AAA9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US12654AAA97 has no effect on the direction of Cincinnati Financial i.e., Cincinnati Financial and 12654AAA9 go up and down completely randomly.
Pair Corralation between Cincinnati Financial and 12654AAA9
Given the investment horizon of 90 days Cincinnati Financial is expected to generate 1.66 times more return on investment than 12654AAA9. However, Cincinnati Financial is 1.66 times more volatile than US12654AAA97. It trades about 0.34 of its potential returns per unit of risk. US12654AAA97 is currently generating about -0.2 per unit of risk. If you would invest 13,819 in Cincinnati Financial on September 5, 2024 and sell it today you would earn a total of 1,830 from holding Cincinnati Financial or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Cincinnati Financial vs. US12654AAA97
Performance |
| Timeline |
| Cincinnati Financial |
| US12654AAA97 |
Cincinnati Financial and 12654AAA9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cincinnati Financial and 12654AAA9
The main advantage of trading using opposite Cincinnati Financial and 12654AAA9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cincinnati Financial position performs unexpectedly, 12654AAA9 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 12654AAA9 will offset losses from the drop in 12654AAA9's long position.| Cincinnati Financial vs. Progressive Corp | Cincinnati Financial vs. The Travelers Companies | Cincinnati Financial vs. Chubb | Cincinnati Financial vs. W R Berkley |
| 12654AAA9 vs. Vodka Brands Corp | 12654AAA9 vs. KNOT Offshore Partners | 12654AAA9 vs. Ecoloclean Industrs | 12654AAA9 vs. Diamond Estates Wines |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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