Correlation Between Clover Health and Credit Acceptance
Can any of the company-specific risk be diversified away by investing in both Clover Health and Credit Acceptance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Clover Health and Credit Acceptance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clover Health Investments, and Credit Acceptance, you can compare the effects of market volatilities on Clover Health and Credit Acceptance 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 Clover Health with a short position of Credit Acceptance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clover Health and Credit Acceptance.
Diversification Opportunities for Clover Health and Credit Acceptance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clover and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clover Health Investments, and Credit Acceptance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Acceptance and Clover Health 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 Clover Health Investments, are associated (or correlated) with Credit Acceptance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Acceptance has no effect on the direction of Clover Health i.e., Clover Health and Credit Acceptance go up and down completely randomly.
Pair Corralation between Clover Health and Credit Acceptance
If you would invest 1,850 in Clover Health Investments, on October 12, 2024 and sell it today you would earn a total of 326.00 from holding Clover Health Investments, or generate 17.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Clover Health Investments, vs. Credit Acceptance
Performance |
| Timeline |
| Clover Health Invest |
| Credit Acceptance |
Clover Health and Credit Acceptance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clover Health and Credit Acceptance
The main advantage of trading using opposite Clover Health and Credit Acceptance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clover Health position performs unexpectedly, Credit Acceptance 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 Credit Acceptance will offset losses from the drop in Credit Acceptance's long position.| Clover Health vs. United Airlines Holdings | Clover Health vs. Hormel Foods | Clover Health vs. United Natural Foods, | Clover Health vs. Tyson Foods |
| Credit Acceptance vs. Visa Inc | Credit Acceptance vs. Mastercard Incorporated | Credit Acceptance vs. American Express | Credit Acceptance vs. PayPal Holdings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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