Correlation Between Encore Capital and WEINGARTEN
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By analyzing existing cross correlation between Encore Capital Group and WEINGARTEN RLTY INVS, you can compare the effects of market volatilities on Encore Capital and WEINGARTEN 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 WEINGARTEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Encore Capital and WEINGARTEN.
Diversification Opportunities for Encore Capital and WEINGARTEN
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Encore and WEINGARTEN is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Encore Capital Group and WEINGARTEN RLTY INVS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEINGARTEN RLTY INVS 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 WEINGARTEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEINGARTEN RLTY INVS has no effect on the direction of Encore Capital i.e., Encore Capital and WEINGARTEN go up and down completely randomly.
Pair Corralation between Encore Capital and WEINGARTEN
Given the investment horizon of 90 days Encore Capital Group is expected to generate 2.0 times more return on investment than WEINGARTEN. However, Encore Capital is 2.0 times more volatile than WEINGARTEN RLTY INVS. It trades about 0.15 of its potential returns per unit of risk. WEINGARTEN RLTY INVS is currently generating about -0.26 per unit of risk. If you would invest 4,754 in Encore Capital Group on November 4, 2024 and sell it today you would earn a total of 196.00 from holding Encore Capital Group or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Encore Capital Group vs. WEINGARTEN RLTY INVS
Performance |
| Timeline |
| Encore Capital Group |
| WEINGARTEN RLTY INVS |
Encore Capital and WEINGARTEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Encore Capital and WEINGARTEN
The main advantage of trading using opposite Encore Capital and WEINGARTEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Encore Capital position performs unexpectedly, WEINGARTEN 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 WEINGARTEN will offset losses from the drop in WEINGARTEN'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 |
| WEINGARTEN vs. AEP TEX INC | WEINGARTEN vs. US BANK NATIONAL | WEINGARTEN vs. Bayerische Motoren Werke | WEINGARTEN vs. Check Point Software |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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