Correlation Between Encore Capital and SIEGR
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By analyzing existing cross correlation between Encore Capital Group and SIEGR 6125 17 AUG 26, you can compare the effects of market volatilities on Encore Capital and SIEGR 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 SIEGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Encore Capital and SIEGR.
Diversification Opportunities for Encore Capital and SIEGR
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Encore and SIEGR is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Encore Capital Group and SIEGR 6125 17 AUG 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEGR 6125 17 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 SIEGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEGR 6125 17 has no effect on the direction of Encore Capital i.e., Encore Capital and SIEGR go up and down completely randomly.
Pair Corralation between Encore Capital and SIEGR
Given the investment horizon of 90 days Encore Capital Group is expected to under-perform the SIEGR. In addition to that, Encore Capital is 9.62 times more volatile than SIEGR 6125 17 AUG 26. It trades about -0.08 of its total potential returns per unit of risk. SIEGR 6125 17 AUG 26 is currently generating about 0.39 per unit of volatility. If you would invest 10,260 in SIEGR 6125 17 AUG 26 on September 12, 2024 and sell it today you would earn a total of 46.00 from holding SIEGR 6125 17 AUG 26 or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Encore Capital Group vs. SIEGR 6125 17 AUG 26
Performance |
| Timeline |
| Encore Capital Group |
| SIEGR 6125 17 |
Encore Capital and SIEGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Encore Capital and SIEGR
The main advantage of trading using opposite Encore Capital and SIEGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Encore Capital position performs unexpectedly, SIEGR 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 SIEGR will offset losses from the drop in SIEGR'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 |
| SIEGR vs. Mativ Holdings | SIEGR vs. Hudson Pacific Properties | SIEGR vs. Franklin Wireless Corp | SIEGR vs. HNI 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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