Correlation Between Employers Holdings and Era
Can any of the company-specific risk be diversified away by investing in both Employers Holdings and Era 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 Era into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Employers Holdings and Era Group, you can compare the effects of market volatilities on Employers Holdings and Era 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 Era. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and Era.
Diversification Opportunities for Employers Holdings and Era
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Employers and Era is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and Era Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Group 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 Era. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Group has no effect on the direction of Employers Holdings i.e., Employers Holdings and Era go up and down completely randomly.
Pair Corralation between Employers Holdings and Era
If you would invest 4,767 in Employers Holdings on August 29, 2024 and sell it today you would earn a total of 557.00 from holding Employers Holdings or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Employers Holdings vs. Era Group
Performance |
| Timeline |
| Employers Holdings |
| Era Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Employers Holdings and Era Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and Era
The main advantage of trading using opposite Employers Holdings and Era positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, Era 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 Era will offset losses from the drop in Era's long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| Era vs. Black Hills | Era vs. Sun Life Financial | Era vs. Reservoir Media | Era vs. CapitaLand Investment Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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