Correlation Between Employers Holdings and ALTRIA
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By analyzing existing cross correlation between Employers Holdings and ALTRIA GROUP INC, you can compare the effects of market volatilities on Employers Holdings and ALTRIA 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 ALTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and ALTRIA.
Diversification Opportunities for Employers Holdings and ALTRIA
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Employers and ALTRIA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and ALTRIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTRIA GROUP INC 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 ALTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTRIA GROUP INC has no effect on the direction of Employers Holdings i.e., Employers Holdings and ALTRIA go up and down completely randomly.
Pair Corralation between Employers Holdings and ALTRIA
Considering the 90-day investment horizon Employers Holdings is expected to generate 1.76 times more return on investment than ALTRIA. However, Employers Holdings is 1.76 times more volatile than ALTRIA GROUP INC. It trades about 0.05 of its potential returns per unit of risk. ALTRIA GROUP INC is currently generating about 0.02 per unit of risk. If you would invest 3,886 in Employers Holdings on December 1, 2024 and sell it today you would earn a total of 1,294 from holding Employers Holdings or generate 33.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Employers Holdings vs. ALTRIA GROUP INC
Performance |
| Timeline |
| Employers Holdings |
| ALTRIA GROUP INC |
Employers Holdings and ALTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and ALTRIA
The main advantage of trading using opposite Employers Holdings and ALTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, ALTRIA 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 ALTRIA will offset losses from the drop in ALTRIA's long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| ALTRIA vs. Ultra Clean Holdings | ALTRIA vs. Ecoloclean Industrs | ALTRIA vs. Northstar Clean Technologies | ALTRIA vs. Vantage Drilling International |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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