Correlation Between REVO INSURANCE and TriMas
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and TriMas 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 REVO INSURANCE and TriMas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and TriMas, you can compare the effects of market volatilities on REVO INSURANCE and TriMas 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 REVO INSURANCE with a short position of TriMas. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and TriMas.
Diversification Opportunities for REVO INSURANCE and TriMas
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between REVO and TriMas is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and TriMas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriMas and REVO INSURANCE 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 REVO INSURANCE SPA are associated (or correlated) with TriMas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriMas has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and TriMas go up and down completely randomly.
Pair Corralation between REVO INSURANCE and TriMas
Assuming the 90 days horizon REVO INSURANCE SPA is expected to under-perform the TriMas. But the stock apears to be less risky and, when comparing its historical volatility, REVO INSURANCE SPA is 2.0 times less risky than TriMas. The stock trades about -0.21 of its potential returns per unit of risk. The TriMas is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,300 in TriMas on November 3, 2024 and sell it today you would earn a total of 20.00 from holding TriMas or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. TriMas
Performance |
| Timeline |
| REVO INSURANCE SPA |
| TriMas |
REVO INSURANCE and TriMas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and TriMas
The main advantage of trading using opposite REVO INSURANCE and TriMas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, TriMas 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 TriMas will offset losses from the drop in TriMas' long position.| REVO INSURANCE vs. BlueScope Steel Limited | REVO INSURANCE vs. Olympic Steel | REVO INSURANCE vs. WILLIS LEASE FIN | REVO INSURANCE vs. GRENKELEASING Dusseldorf |
| TriMas vs. Compugroup Medical SE | TriMas vs. Inspire Medical Systems | TriMas vs. Peijia Medical Limited | TriMas vs. Apollo Medical 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |