Correlation Between Encore Capital and Conifer Holdings,
Can any of the company-specific risk be diversified away by investing in both Encore Capital and Conifer Holdings, 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 Encore Capital and Conifer Holdings, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Encore Capital Group and Conifer Holdings, 975, you can compare the effects of market volatilities on Encore Capital and Conifer Holdings, 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 Encore Capital with a short position of Conifer Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Encore Capital and Conifer Holdings,.
Diversification Opportunities for Encore Capital and Conifer Holdings,
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Encore and Conifer is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Encore Capital Group and Conifer Holdings, 975 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holdings, 975 and Encore Capital 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 Encore Capital Group are associated (or correlated) with Conifer Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holdings, 975 has no effect on the direction of Encore Capital i.e., Encore Capital and Conifer Holdings, go up and down completely randomly.
Pair Corralation between Encore Capital and Conifer Holdings,
Given the investment horizon of 90 days Encore Capital is expected to generate 21.04 times less return on investment than Conifer Holdings,. But when comparing it to its historical volatility, Encore Capital Group is 3.26 times less risky than Conifer Holdings,. It trades about 0.01 of its potential returns per unit of risk. Conifer Holdings, 975 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,286 in Conifer Holdings, 975 on November 3, 2024 and sell it today you would earn a total of 847.00 from holding Conifer Holdings, 975 or generate 65.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 74.19% |
| Values | Daily Returns |
Encore Capital Group vs. Conifer Holdings, 975
Performance |
| Timeline |
| Encore Capital Group |
| Conifer Holdings, 975 |
Encore Capital and Conifer Holdings, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Encore Capital and Conifer Holdings,
The main advantage of trading using opposite Encore Capital and Conifer Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Encore Capital position performs unexpectedly, Conifer Holdings, 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 Conifer Holdings, will offset losses from the drop in Conifer Holdings,'s long position.| Encore Capital vs. Guild Holdings Co | Encore Capital vs. Mr Cooper Group | Encore Capital vs. CNFinance Holdings | Encore Capital vs. Security National Financial |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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