Correlation Between Employers Holdings and 49446RAZ2
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By analyzing existing cross correlation between Employers Holdings and KIM 32 01 APR 32, you can compare the effects of market volatilities on Employers Holdings and 49446RAZ2 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 49446RAZ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and 49446RAZ2.
Diversification Opportunities for Employers Holdings and 49446RAZ2
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Employers and 49446RAZ2 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and KIM 32 01 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM 32 01 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 49446RAZ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM 32 01 has no effect on the direction of Employers Holdings i.e., Employers Holdings and 49446RAZ2 go up and down completely randomly.
Pair Corralation between Employers Holdings and 49446RAZ2
Considering the 90-day investment horizon Employers Holdings is expected to generate 0.47 times more return on investment than 49446RAZ2. However, Employers Holdings is 2.12 times less risky than 49446RAZ2. It trades about -0.07 of its potential returns per unit of risk. KIM 32 01 APR 32 is currently generating about -0.16 per unit of risk. If you would invest 5,306 in Employers Holdings on September 13, 2024 and sell it today you would lose (58.00) from holding Employers Holdings or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Employers Holdings vs. KIM 32 01 APR 32
Performance |
| Timeline |
| Employers Holdings |
| KIM 32 01 |
Employers Holdings and 49446RAZ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and 49446RAZ2
The main advantage of trading using opposite Employers Holdings and 49446RAZ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, 49446RAZ2 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 49446RAZ2 will offset losses from the drop in 49446RAZ2's long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| 49446RAZ2 vs. AEP TEX INC | 49446RAZ2 vs. US BANK NATIONAL | 49446RAZ2 vs. Alphabet Inc Class C | 49446RAZ2 vs. InMode |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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