Correlation Between Encore Capital and 88579YBC4
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By analyzing existing cross correlation between Encore Capital Group and 3M 3625 percent, you can compare the effects of market volatilities on Encore Capital and 88579YBC4 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 88579YBC4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Encore Capital and 88579YBC4.
Diversification Opportunities for Encore Capital and 88579YBC4
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Encore and 88579YBC4 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Encore Capital Group and 3M 3625 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M 3625 percent 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 88579YBC4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M 3625 percent has no effect on the direction of Encore Capital i.e., Encore Capital and 88579YBC4 go up and down completely randomly.
Pair Corralation between Encore Capital and 88579YBC4
Given the investment horizon of 90 days Encore Capital Group is expected to generate 5.91 times more return on investment than 88579YBC4. However, Encore Capital is 5.91 times more volatile than 3M 3625 percent. It trades about 0.05 of its potential returns per unit of risk. 3M 3625 percent is currently generating about 0.01 per unit of risk. If you would invest 4,381 in Encore Capital Group on September 1, 2024 and sell it today you would earn a total of 538.00 from holding Encore Capital Group or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Encore Capital Group vs. 3M 3625 percent
Performance |
| Timeline |
| Encore Capital Group |
| 3M 3625 percent |
Encore Capital and 88579YBC4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Encore Capital and 88579YBC4
The main advantage of trading using opposite Encore Capital and 88579YBC4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Encore Capital position performs unexpectedly, 88579YBC4 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 88579YBC4 will offset losses from the drop in 88579YBC4's long position.| Encore Capital vs. 360 Finance | Encore Capital vs. Atlanticus Holdings | Encore Capital vs. Qudian Inc | Encore Capital vs. Enova International |
| 88579YBC4 vs. Encore Capital Group | 88579YBC4 vs. KVH Industries | 88579YBC4 vs. Freedom Bank of | 88579YBC4 vs. Commonwealth Bank of |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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