Correlation Between CorVel Corp and FANH Old
Can any of the company-specific risk be diversified away by investing in both CorVel Corp and FANH Old 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 CorVel Corp and FANH Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CorVel Corp and FANH Old, you can compare the effects of market volatilities on CorVel Corp and FANH Old 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 CorVel Corp with a short position of FANH Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of CorVel Corp and FANH Old.
Diversification Opportunities for CorVel Corp and FANH Old
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CorVel and FANH is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding CorVel Corp and FANH Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANH Old and CorVel Corp 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 CorVel Corp are associated (or correlated) with FANH Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANH Old has no effect on the direction of CorVel Corp i.e., CorVel Corp and FANH Old go up and down completely randomly.
Pair Corralation between CorVel Corp and FANH Old
If you would invest 11,126 in CorVel Corp on November 1, 2024 and sell it today you would earn a total of 438.00 from holding CorVel Corp or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
CorVel Corp vs. FANH Old
Performance |
| Timeline |
| CorVel Corp |
| FANH Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CorVel Corp and FANH Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CorVel Corp and FANH Old
The main advantage of trading using opposite CorVel Corp and FANH Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CorVel Corp position performs unexpectedly, FANH Old 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 FANH Old will offset losses from the drop in FANH Old's long position.| CorVel Corp vs. Erie Indemnity | CorVel Corp vs. Huize Holding | CorVel Corp vs. Crawford Company | CorVel Corp vs. eHealth |
| FANH Old vs. Erie Indemnity | FANH Old vs. Crawford Company | FANH Old vs. Crawford Company | FANH Old vs. CorVel Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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