Correlation Between Employers Holdings and 207597EH4
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By analyzing existing cross correlation between Employers Holdings and CONNECTICUT LT PWR, you can compare the effects of market volatilities on Employers Holdings and 207597EH4 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 207597EH4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and 207597EH4.
Diversification Opportunities for Employers Holdings and 207597EH4
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Employers and 207597EH4 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and CONNECTICUT LT PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONNECTICUT LT PWR 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 207597EH4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONNECTICUT LT PWR has no effect on the direction of Employers Holdings i.e., Employers Holdings and 207597EH4 go up and down completely randomly.
Pair Corralation between Employers Holdings and 207597EH4
Considering the 90-day investment horizon Employers Holdings is expected to generate 1.27 times more return on investment than 207597EH4. However, Employers Holdings is 1.27 times more volatile than CONNECTICUT LT PWR. It trades about 0.26 of its potential returns per unit of risk. CONNECTICUT LT PWR is currently generating about 0.18 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 | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Employers Holdings vs. CONNECTICUT LT PWR
Performance |
| Timeline |
| Employers Holdings |
| CONNECTICUT LT PWR |
Employers Holdings and 207597EH4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and 207597EH4
The main advantage of trading using opposite Employers Holdings and 207597EH4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, 207597EH4 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 207597EH4 will offset losses from the drop in 207597EH4's long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| 207597EH4 vs. Direct Line Insurance | 207597EH4 vs. Assurant | 207597EH4 vs. Employers Holdings | 207597EH4 vs. QBE Insurance Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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