Correlation Between Employers Holdings and NORFOLK
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By analyzing existing cross correlation between Employers Holdings and NORFOLK SOUTHN P, you can compare the effects of market volatilities on Employers Holdings and NORFOLK 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 NORFOLK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and NORFOLK.
Diversification Opportunities for Employers Holdings and NORFOLK
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Employers and NORFOLK is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and NORFOLK SOUTHN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORFOLK SOUTHN P 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 NORFOLK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORFOLK SOUTHN P has no effect on the direction of Employers Holdings i.e., Employers Holdings and NORFOLK go up and down completely randomly.
Pair Corralation between Employers Holdings and NORFOLK
Considering the 90-day investment horizon Employers Holdings is expected to generate 1.49 times more return on investment than NORFOLK. However, Employers Holdings is 1.49 times more volatile than NORFOLK SOUTHN P. It trades about 0.09 of its potential returns per unit of risk. NORFOLK SOUTHN P is currently generating about -0.01 per unit of risk. If you would invest 3,542 in Employers Holdings on September 12, 2024 and sell it today you would earn a total of 1,652 from holding Employers Holdings or generate 46.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.38% |
| Values | Daily Returns |
Employers Holdings vs. NORFOLK SOUTHN P
Performance |
| Timeline |
| Employers Holdings |
| NORFOLK SOUTHN P |
Employers Holdings and NORFOLK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and NORFOLK
The main advantage of trading using opposite Employers Holdings and NORFOLK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, NORFOLK 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 NORFOLK will offset losses from the drop in NORFOLK's long position.| Employers Holdings vs. First American | Employers Holdings vs. Assurant | Employers Holdings vs. NMI Holdings | Employers Holdings vs. MGIC Investment Corp |
| NORFOLK vs. AEP TEX INC | NORFOLK vs. US BANK NATIONAL | NORFOLK vs. Applied Blockchain | NORFOLK vs. BigBearai 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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