Correlation Between Employers Holdings and SIMON
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By analyzing existing cross correlation between Employers Holdings and SIMON PPTY GROUP, you can compare the effects of market volatilities on Employers Holdings and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and SIMON.
Diversification Opportunities for Employers Holdings and SIMON
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Employers and SIMON is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Employers Holdings i.e., Employers Holdings and SIMON go up and down completely randomly.
Pair Corralation between Employers Holdings and SIMON
Considering the 90-day investment horizon Employers Holdings is expected to generate 2.5 times more return on investment than SIMON. However, Employers Holdings is 2.5 times more volatile than SIMON PPTY GROUP. It trades about 0.05 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.01 per unit of risk. If you would invest 3,942 in Employers Holdings on September 5, 2024 and sell it today you would earn a total of 1,366 from holding Employers Holdings or generate 34.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Employers Holdings vs. SIMON PPTY GROUP
Performance |
| Timeline |
| Employers Holdings |
| SIMON PPTY GROUP |
Employers Holdings and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and SIMON
The main advantage of trading using opposite Employers Holdings and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| SIMON vs. Palomar Holdings | SIMON vs. Inflection Point Acquisition | SIMON vs. KNOT Offshore Partners | SIMON vs. Employers 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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