Correlation Between Employers Holdings and CryoLife
Can any of the company-specific risk be diversified away by investing in both Employers Holdings and CryoLife 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 CryoLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Employers Holdings and CryoLife, you can compare the effects of market volatilities on Employers Holdings and CryoLife 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 CryoLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and CryoLife.
Diversification Opportunities for Employers Holdings and CryoLife
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Employers and CryoLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and CryoLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoLife 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 CryoLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoLife has no effect on the direction of Employers Holdings i.e., Employers Holdings and CryoLife go up and down completely randomly.
Pair Corralation between Employers Holdings and CryoLife
If you would invest 4,121 in Employers Holdings on September 14, 2024 and sell it today you would earn a total of 1,117 from holding Employers Holdings or generate 27.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Employers Holdings vs. CryoLife
Performance |
| Timeline |
| Employers Holdings |
| CryoLife |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Employers Holdings and CryoLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and CryoLife
The main advantage of trading using opposite Employers Holdings and CryoLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, CryoLife 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 CryoLife will offset losses from the drop in CryoLife's long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| CryoLife vs. NI Holdings | CryoLife vs. Sun Life Financial | CryoLife vs. WiMi Hologram Cloud | CryoLife vs. Employers Holdings |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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