Correlation Between Evercore Partners and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both Evercore Partners and Selective Insurance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Evercore Partners and Selective Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evercore Partners and Selective Insurance Group, you can compare the effects of market volatilities on Evercore Partners and Selective Insurance 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 Evercore Partners with a short position of Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evercore Partners and Selective Insurance.
Diversification Opportunities for Evercore Partners and Selective Insurance
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Evercore and Selective is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Evercore Partners and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance and Evercore Partners 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 Evercore Partners are associated (or correlated) with Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of Evercore Partners i.e., Evercore Partners and Selective Insurance go up and down completely randomly.
Pair Corralation between Evercore Partners and Selective Insurance
Considering the 90-day investment horizon Evercore Partners is expected to generate 2.05 times more return on investment than Selective Insurance. However, Evercore Partners is 2.05 times more volatile than Selective Insurance Group. It trades about 0.2 of its potential returns per unit of risk. Selective Insurance Group is currently generating about 0.27 per unit of risk. If you would invest 26,507 in Evercore Partners on August 31, 2024 and sell it today you would earn a total of 4,303 from holding Evercore Partners or generate 16.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evercore Partners vs. Selective Insurance Group
Performance |
| Timeline |
| Evercore Partners |
| Selective Insurance |
Evercore Partners and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evercore Partners and Selective Insurance
The main advantage of trading using opposite Evercore Partners and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evercore Partners position performs unexpectedly, Selective Insurance 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 Selective Insurance will offset losses from the drop in Selective Insurance's long position.| Evercore Partners vs. PJT Partners | Evercore Partners vs. Moelis Co | Evercore Partners vs. Perella Weinberg Partners | Evercore Partners vs. Jefferies Financial Group |
| Selective Insurance vs. Progressive Corp | Selective Insurance vs. Chubb | Selective Insurance vs. The Allstate | Selective Insurance vs. Kemper |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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