Correlation Between Encore Capital and 83088MAL6
Specify exactly 2 symbols:
By analyzing existing cross correlation between Encore Capital Group and SWKS 3 01 JUN 31, you can compare the effects of market volatilities on Encore Capital and 83088MAL6 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 83088MAL6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Encore Capital and 83088MAL6.
Diversification Opportunities for Encore Capital and 83088MAL6
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Encore and 83088MAL6 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Encore Capital Group and SWKS 3 01 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWKS 3 01 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 83088MAL6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWKS 3 01 has no effect on the direction of Encore Capital i.e., Encore Capital and 83088MAL6 go up and down completely randomly.
Pair Corralation between Encore Capital and 83088MAL6
Given the investment horizon of 90 days Encore Capital Group is expected to generate 2.17 times more return on investment than 83088MAL6. However, Encore Capital is 2.17 times more volatile than SWKS 3 01 JUN 31. It trades about 0.01 of its potential returns per unit of risk. SWKS 3 01 JUN 31 is currently generating about -0.01 per unit of risk. If you would invest 4,881 in Encore Capital Group on September 3, 2024 and sell it today you would earn a total of 38.00 from holding Encore Capital Group or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.14% |
| Values | Daily Returns |
Encore Capital Group vs. SWKS 3 01 JUN 31
Performance |
| Timeline |
| Encore Capital Group |
| SWKS 3 01 |
Encore Capital and 83088MAL6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Encore Capital and 83088MAL6
The main advantage of trading using opposite Encore Capital and 83088MAL6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Encore Capital position performs unexpectedly, 83088MAL6 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 83088MAL6 will offset losses from the drop in 83088MAL6'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 |
| 83088MAL6 vs. Encore Capital Group | 83088MAL6 vs. Pintec Technology Holdings | 83088MAL6 vs. Chiba Bank Ltd | 83088MAL6 vs. KeyCorp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |