Correlation Between Employers Holdings and 03040WAP0
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By analyzing existing cross correlation between Employers Holdings and US03040WAP05, you can compare the effects of market volatilities on Employers Holdings and 03040WAP0 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 03040WAP0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and 03040WAP0.
Diversification Opportunities for Employers Holdings and 03040WAP0
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Employers and 03040WAP0 is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and US03040WAP05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US03040WAP05 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 03040WAP0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US03040WAP05 has no effect on the direction of Employers Holdings i.e., Employers Holdings and 03040WAP0 go up and down completely randomly.
Pair Corralation between Employers Holdings and 03040WAP0
Considering the 90-day investment horizon Employers Holdings is expected to generate 1.62 times more return on investment than 03040WAP0. However, Employers Holdings is 1.62 times more volatile than US03040WAP05. It trades about 0.26 of its potential returns per unit of risk. US03040WAP05 is currently generating about 0.24 per unit of risk. If you would invest 4,754 in Employers Holdings on September 2, 2024 and sell it today you would earn a total of 582.00 from holding Employers Holdings or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
Employers Holdings vs. US03040WAP05
Performance |
| Timeline |
| Employers Holdings |
| US03040WAP05 |
Employers Holdings and 03040WAP0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and 03040WAP0
The main advantage of trading using opposite Employers Holdings and 03040WAP0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, 03040WAP0 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 03040WAP0 will offset losses from the drop in 03040WAP0's long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| 03040WAP0 vs. Sun Life Financial | 03040WAP0 vs. Employers Holdings | 03040WAP0 vs. Assurant | 03040WAP0 vs. Citizens |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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