Correlation Between Employers Holdings and CITIGROUP
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By analyzing existing cross correlation between Employers Holdings and CITIGROUP INC 585, you can compare the effects of market volatilities on Employers Holdings and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and CITIGROUP.
Diversification Opportunities for Employers Holdings and CITIGROUP
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Employers and CITIGROUP is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and CITIGROUP INC 585 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 585 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 585 has no effect on the direction of Employers Holdings i.e., Employers Holdings and CITIGROUP go up and down completely randomly.
Pair Corralation between Employers Holdings and CITIGROUP
Considering the 90-day investment horizon Employers Holdings is expected to generate 0.74 times more return on investment than CITIGROUP. However, Employers Holdings is 1.35 times less risky than CITIGROUP. It trades about 0.09 of its potential returns per unit of risk. CITIGROUP INC 585 is currently generating about 0.04 per unit of risk. If you would invest 3,811 in Employers Holdings on August 25, 2024 and sell it today you would earn a total of 1,514 from holding Employers Holdings or generate 39.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.86% |
| Values | Daily Returns |
Employers Holdings vs. CITIGROUP INC 585
Performance |
| Timeline |
| Employers Holdings |
| CITIGROUP INC 585 |
Employers Holdings and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and CITIGROUP
The main advantage of trading using opposite Employers Holdings and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| CITIGROUP vs. Ironveld Plc | CITIGROUP vs. Employers Holdings | CITIGROUP vs. NI Holdings | CITIGROUP vs. ICC 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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