Correlation Between Cincinnati Financial and HEXWIN
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By analyzing existing cross correlation between Cincinnati Financial and HEXWIN 5375 31 OCT 26, you can compare the effects of market volatilities on Cincinnati Financial and HEXWIN 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 HEXWIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cincinnati Financial and HEXWIN.
Diversification Opportunities for Cincinnati Financial and HEXWIN
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cincinnati and HEXWIN is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cincinnati Financial and HEXWIN 5375 31 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXWIN 5375 31 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 HEXWIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXWIN 5375 31 has no effect on the direction of Cincinnati Financial i.e., Cincinnati Financial and HEXWIN go up and down completely randomly.
Pair Corralation between Cincinnati Financial and HEXWIN
Given the investment horizon of 90 days Cincinnati Financial is expected to generate 0.76 times more return on investment than HEXWIN. However, Cincinnati Financial is 1.31 times less risky than HEXWIN. It trades about 0.13 of its potential returns per unit of risk. HEXWIN 5375 31 OCT 26 is currently generating about -0.11 per unit of risk. If you would invest 12,032 in Cincinnati Financial on September 3, 2024 and sell it today you would earn a total of 3,951 from holding Cincinnati Financial or generate 32.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 33.73% |
| Values | Daily Returns |
Cincinnati Financial vs. HEXWIN 5375 31 OCT 26
Performance |
| Timeline |
| Cincinnati Financial |
| HEXWIN 5375 31 |
Cincinnati Financial and HEXWIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cincinnati Financial and HEXWIN
The main advantage of trading using opposite Cincinnati Financial and HEXWIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cincinnati Financial position performs unexpectedly, HEXWIN 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 HEXWIN will offset losses from the drop in HEXWIN's long position.| Cincinnati Financial vs. Progressive Corp | Cincinnati Financial vs. The Travelers Companies | Cincinnati Financial vs. Chubb | Cincinnati Financial vs. W R Berkley |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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