Correlation Between Cincinnati Financial and 49446RAZ2
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By analyzing existing cross correlation between Cincinnati Financial and KIM 32 01 APR 32, you can compare the effects of market volatilities on Cincinnati Financial and 49446RAZ2 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 49446RAZ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cincinnati Financial and 49446RAZ2.
Diversification Opportunities for Cincinnati Financial and 49446RAZ2
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cincinnati and 49446RAZ2 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cincinnati Financial and KIM 32 01 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM 32 01 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 49446RAZ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM 32 01 has no effect on the direction of Cincinnati Financial i.e., Cincinnati Financial and 49446RAZ2 go up and down completely randomly.
Pair Corralation between Cincinnati Financial and 49446RAZ2
Given the investment horizon of 90 days Cincinnati Financial is expected to generate 0.76 times more return on investment than 49446RAZ2. However, Cincinnati Financial is 1.32 times less risky than 49446RAZ2. It trades about 0.02 of its potential returns per unit of risk. KIM 32 01 APR 32 is currently generating about -0.16 per unit of risk. If you would invest 15,118 in Cincinnati Financial on September 13, 2024 and sell it today you would earn a total of 50.00 from holding Cincinnati Financial or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Cincinnati Financial vs. KIM 32 01 APR 32
Performance |
| Timeline |
| Cincinnati Financial |
| KIM 32 01 |
Cincinnati Financial and 49446RAZ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cincinnati Financial and 49446RAZ2
The main advantage of trading using opposite Cincinnati Financial and 49446RAZ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cincinnati Financial position performs unexpectedly, 49446RAZ2 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 49446RAZ2 will offset losses from the drop in 49446RAZ2's long position.| Cincinnati Financial vs. Progressive Corp | Cincinnati Financial vs. Chubb | Cincinnati Financial vs. W R Berkley | Cincinnati Financial vs. The Allstate |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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