Correlation Between Employers Holdings and 88023UAH4
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By analyzing existing cross correlation between Employers Holdings and US88023UAH41, you can compare the effects of market volatilities on Employers Holdings and 88023UAH4 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 88023UAH4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and 88023UAH4.
Diversification Opportunities for Employers Holdings and 88023UAH4
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Employers and 88023UAH4 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and US88023UAH41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US88023UAH41 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 88023UAH4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US88023UAH41 has no effect on the direction of Employers Holdings i.e., Employers Holdings and 88023UAH4 go up and down completely randomly.
Pair Corralation between Employers Holdings and 88023UAH4
Considering the 90-day investment horizon Employers Holdings is expected to under-perform the 88023UAH4. But the stock apears to be less risky and, when comparing its historical volatility, Employers Holdings is 4.42 times less risky than 88023UAH4. The stock trades about -0.21 of its potential returns per unit of risk. The US88023UAH41 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 9,332 in US88023UAH41 on September 12, 2024 and sell it today you would lose (7.00) from holding US88023UAH41 or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Employers Holdings vs. US88023UAH41
Performance |
| Timeline |
| Employers Holdings |
| US88023UAH41 |
Employers Holdings and 88023UAH4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and 88023UAH4
The main advantage of trading using opposite Employers Holdings and 88023UAH4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, 88023UAH4 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 88023UAH4 will offset losses from the drop in 88023UAH4's long position.| Employers Holdings vs. First American | Employers Holdings vs. Assurant | Employers Holdings vs. NMI Holdings | Employers Holdings vs. MGIC Investment Corp |
| 88023UAH4 vs. Employers Holdings | 88023UAH4 vs. Assurant | 88023UAH4 vs. ICC Holdings | 88023UAH4 vs. Ispire Technology Common |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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