Correlation Between Employers Holdings and ACG Metals
Can any of the company-specific risk be diversified away by investing in both Employers Holdings and ACG Metals 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 Employers Holdings and ACG Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Employers Holdings and ACG Metals Limited, you can compare the effects of market volatilities on Employers Holdings and ACG Metals 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 Employers Holdings with a short position of ACG Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and ACG Metals.
Diversification Opportunities for Employers Holdings and ACG Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Employers and ACG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and ACG Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Metals Limited and Employers Holdings 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 Employers Holdings are associated (or correlated) with ACG Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Metals Limited has no effect on the direction of Employers Holdings i.e., Employers Holdings and ACG Metals go up and down completely randomly.
Pair Corralation between Employers Holdings and ACG Metals
If you would invest 4,845 in Employers Holdings on September 1, 2024 and sell it today you would earn a total of 491.00 from holding Employers Holdings or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Employers Holdings vs. ACG Metals Limited
Performance |
| Timeline |
| Employers Holdings |
| ACG Metals Limited |
Employers Holdings and ACG Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and ACG Metals
The main advantage of trading using opposite Employers Holdings and ACG Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, ACG Metals 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 ACG Metals will offset losses from the drop in ACG Metals' long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| ACG Metals vs. Legacy Education | ACG Metals vs. Apple Inc | ACG Metals vs. NVIDIA | ACG Metals vs. Microsoft |
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 CEOs Directory module to screen CEOs from public companies around the world.
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