Correlation Between Cincinnati Financial and 88579YAV3
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By analyzing existing cross correlation between Cincinnati Financial and 3M 225 percent, you can compare the effects of market volatilities on Cincinnati Financial and 88579YAV3 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 88579YAV3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cincinnati Financial and 88579YAV3.
Diversification Opportunities for Cincinnati Financial and 88579YAV3
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cincinnati and 88579YAV3 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cincinnati Financial and 3M 225 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M 225 percent 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 88579YAV3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M 225 percent has no effect on the direction of Cincinnati Financial i.e., Cincinnati Financial and 88579YAV3 go up and down completely randomly.
Pair Corralation between Cincinnati Financial and 88579YAV3
Given the investment horizon of 90 days Cincinnati Financial is expected to generate 3.05 times more return on investment than 88579YAV3. However, Cincinnati Financial is 3.05 times more volatile than 3M 225 percent. It trades about 0.07 of its potential returns per unit of risk. 3M 225 percent is currently generating about 0.0 per unit of risk. If you would invest 9,874 in Cincinnati Financial on September 5, 2024 and sell it today you would earn a total of 5,775 from holding Cincinnati Financial or generate 58.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.74% |
| Values | Daily Returns |
Cincinnati Financial vs. 3M 225 percent
Performance |
| Timeline |
| Cincinnati Financial |
| 3M 225 percent |
Cincinnati Financial and 88579YAV3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cincinnati Financial and 88579YAV3
The main advantage of trading using opposite Cincinnati Financial and 88579YAV3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cincinnati Financial position performs unexpectedly, 88579YAV3 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 88579YAV3 will offset losses from the drop in 88579YAV3's long position.| Cincinnati Financial vs. Progressive Corp | Cincinnati Financial vs. The Travelers Companies | Cincinnati Financial vs. Chubb | Cincinnati Financial vs. W R Berkley |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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