Correlation Between Credit Acceptance and N1RG34
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance and N1RG34 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 Credit Acceptance and N1RG34 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and N1RG34, you can compare the effects of market volatilities on Credit Acceptance and N1RG34 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 Credit Acceptance with a short position of N1RG34. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and N1RG34.
Diversification Opportunities for Credit Acceptance and N1RG34
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and N1RG34 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and N1RG34 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N1RG34 and Credit Acceptance 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 Credit Acceptance are associated (or correlated) with N1RG34. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N1RG34 has no effect on the direction of Credit Acceptance i.e., Credit Acceptance and N1RG34 go up and down completely randomly.
Pair Corralation between Credit Acceptance and N1RG34
If you would invest 56,430 in N1RG34 on September 22, 2024 and sell it today you would lose (311.00) from holding N1RG34 or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Acceptance vs. N1RG34
Performance |
| Timeline |
| Credit Acceptance |
| N1RG34 |
Credit Acceptance and N1RG34 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and N1RG34
The main advantage of trading using opposite Credit Acceptance and N1RG34 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance position performs unexpectedly, N1RG34 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 N1RG34 will offset losses from the drop in N1RG34's long position.| Credit Acceptance vs. Visa Inc | Credit Acceptance vs. Mastercard Incorporated | Credit Acceptance vs. American Express | Credit Acceptance vs. PayPal Holdings |
| N1RG34 vs. Credit Acceptance | N1RG34 vs. Zoom Video Communications | N1RG34 vs. Fidelity National Information | N1RG34 vs. Verizon Communications |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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