Correlation Between Crawford and Brp
Can any of the company-specific risk be diversified away by investing in both Crawford and Brp 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 Crawford and Brp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crawford Company and Brp Group, you can compare the effects of market volatilities on Crawford and Brp 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 Crawford with a short position of Brp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crawford and Brp.
Diversification Opportunities for Crawford and Brp
Good diversification
The 3 months correlation between Crawford and Brp is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Crawford Company and Brp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brp Group and Crawford 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 Crawford Company are associated (or correlated) with Brp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brp Group has no effect on the direction of Crawford i.e., Crawford and Brp go up and down completely randomly.
Pair Corralation between Crawford and Brp
Assuming the 90 days horizon Crawford Company is expected to generate 1.16 times more return on investment than Brp. However, Crawford is 1.16 times more volatile than Brp Group. It trades about 0.07 of its potential returns per unit of risk. Brp Group is currently generating about -0.01 per unit of risk. If you would invest 503.00 in Crawford Company on August 28, 2024 and sell it today you would earn a total of 577.00 from holding Crawford Company or generate 114.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.78% |
| Values | Daily Returns |
Crawford Company vs. Brp Group
Performance |
| Timeline |
| Crawford |
| Brp Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Crawford and Brp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crawford and Brp
The main advantage of trading using opposite Crawford and Brp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crawford position performs unexpectedly, Brp 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 Brp will offset losses from the drop in Brp's long position.| Crawford vs. CorVel Corp | Crawford vs. Erie Indemnity | Crawford vs. Willis Towers Watson | Crawford vs. Huize Holding |
| Brp vs. Arthur J Gallagher | Brp vs. Marsh McLennan Companies | Brp vs. Willis Towers Watson | Brp vs. Erie Indemnity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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