Correlation Between Cincinnati Financial and 512807AT5
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By analyzing existing cross correlation between Cincinnati Financial and LAM RESEARCH PORATION, you can compare the effects of market volatilities on Cincinnati Financial and 512807AT5 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 512807AT5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cincinnati Financial and 512807AT5.
Diversification Opportunities for Cincinnati Financial and 512807AT5
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cincinnati and 512807AT5 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cincinnati Financial and LAM RESEARCH PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAM RESEARCH PORATION 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 512807AT5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAM RESEARCH PORATION has no effect on the direction of Cincinnati Financial i.e., Cincinnati Financial and 512807AT5 go up and down completely randomly.
Pair Corralation between Cincinnati Financial and 512807AT5
Given the investment horizon of 90 days Cincinnati Financial is expected to generate 1.51 times more return on investment than 512807AT5. However, Cincinnati Financial is 1.51 times more volatile than LAM RESEARCH PORATION. It trades about 0.18 of its potential returns per unit of risk. LAM RESEARCH PORATION is currently generating about -0.01 per unit of risk. If you would invest 11,081 in Cincinnati Financial on September 12, 2024 and sell it today you would earn a total of 3,902 from holding Cincinnati Financial or generate 35.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.32% |
| Values | Daily Returns |
Cincinnati Financial vs. LAM RESEARCH PORATION
Performance |
| Timeline |
| Cincinnati Financial |
| LAM RESEARCH PORATION |
Cincinnati Financial and 512807AT5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cincinnati Financial and 512807AT5
The main advantage of trading using opposite Cincinnati Financial and 512807AT5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cincinnati Financial position performs unexpectedly, 512807AT5 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 512807AT5 will offset losses from the drop in 512807AT5's long position.| Cincinnati Financial vs. Aeye Inc | Cincinnati Financial vs. Ep Emerging Markets | Cincinnati Financial vs. LiCycle Holdings Corp | Cincinnati Financial vs. SEI Investments |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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