Correlation Between Equifax and Experian PLC
Can any of the company-specific risk be diversified away by investing in both Equifax and Experian PLC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Equifax and Experian PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equifax and Experian PLC, you can compare the effects of market volatilities on Equifax and Experian PLC 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 Equifax with a short position of Experian PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equifax and Experian PLC.
Diversification Opportunities for Equifax and Experian PLC
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Equifax and Experian is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Equifax and Experian PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Experian PLC and Equifax 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 Equifax are associated (or correlated) with Experian PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Experian PLC has no effect on the direction of Equifax i.e., Equifax and Experian PLC go up and down completely randomly.
Pair Corralation between Equifax and Experian PLC
Considering the 90-day investment horizon Equifax is expected to generate 1.08 times more return on investment than Experian PLC. However, Equifax is 1.08 times more volatile than Experian PLC. It trades about -0.06 of its potential returns per unit of risk. Experian PLC is currently generating about -0.12 per unit of risk. If you would invest 26,890 in Equifax on August 31, 2024 and sell it today you would lose (771.00) from holding Equifax or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equifax vs. Experian PLC
Performance |
| Timeline |
| Equifax |
| Experian PLC |
Equifax and Experian PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equifax and Experian PLC
The main advantage of trading using opposite Equifax and Experian PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equifax position performs unexpectedly, Experian PLC 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 Experian PLC will offset losses from the drop in Experian PLC's long position.| Equifax vs. CRA International | Equifax vs. Huron Consulting Group | Equifax vs. Forrester Research | Equifax vs. Exponent |
| Experian PLC vs. TransUnion | Experian PLC vs. Equifax | Experian PLC vs. Booz Allen Hamilton | Experian PLC vs. Verisk Analytics |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |