Correlation Between Encore Capital and TAISEM
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By analyzing existing cross correlation between Encore Capital Group and TAISEM 175 25 OCT 26, you can compare the effects of market volatilities on Encore Capital and TAISEM 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 TAISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Encore Capital and TAISEM.
Diversification Opportunities for Encore Capital and TAISEM
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Encore and TAISEM is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Encore Capital Group and TAISEM 175 25 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAISEM 175 25 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 TAISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAISEM 175 25 has no effect on the direction of Encore Capital i.e., Encore Capital and TAISEM go up and down completely randomly.
Pair Corralation between Encore Capital and TAISEM
Given the investment horizon of 90 days Encore Capital Group is expected to generate 1.35 times more return on investment than TAISEM. However, Encore Capital is 1.35 times more volatile than TAISEM 175 25 OCT 26. It trades about 0.06 of its potential returns per unit of risk. TAISEM 175 25 OCT 26 is currently generating about -0.02 per unit of risk. If you would invest 4,727 in Encore Capital Group on August 29, 2024 and sell it today you would earn a total of 179.00 from holding Encore Capital Group or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.05% |
| Values | Daily Returns |
Encore Capital Group vs. TAISEM 175 25 OCT 26
Performance |
| Timeline |
| Encore Capital Group |
| TAISEM 175 25 |
Encore Capital and TAISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Encore Capital and TAISEM
The main advantage of trading using opposite Encore Capital and TAISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Encore Capital position performs unexpectedly, TAISEM 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 TAISEM will offset losses from the drop in TAISEM'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 |
| TAISEM vs. Monster Beverage Corp | TAISEM vs. Jacobs Solutions | TAISEM vs. Dream Finders Homes | TAISEM vs. Parker Hannifin |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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