Correlation Between Mid Atlantic and Encore Capital
Can any of the company-specific risk be diversified away by investing in both Mid Atlantic and Encore Capital 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 Mid Atlantic and Encore Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Atlantic Home Health and Encore Capital Group, you can compare the effects of market volatilities on Mid Atlantic and Encore Capital 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 Mid Atlantic with a short position of Encore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Atlantic and Encore Capital.
Diversification Opportunities for Mid Atlantic and Encore Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mid and Encore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mid Atlantic Home Health and Encore Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Encore Capital Group and Mid Atlantic 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 Mid Atlantic Home Health are associated (or correlated) with Encore Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Encore Capital Group has no effect on the direction of Mid Atlantic i.e., Mid Atlantic and Encore Capital go up and down completely randomly.
Pair Corralation between Mid Atlantic and Encore Capital
If you would invest 4,474 in Encore Capital Group on September 12, 2024 and sell it today you would earn a total of 407.00 from holding Encore Capital Group or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Mid Atlantic Home Health vs. Encore Capital Group
Performance |
| Timeline |
| Mid Atlantic Home |
| Encore Capital Group |
Mid Atlantic and Encore Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Atlantic and Encore Capital
The main advantage of trading using opposite Mid Atlantic and Encore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Atlantic position performs unexpectedly, Encore Capital 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 Encore Capital will offset losses from the drop in Encore Capital's long position.| Mid Atlantic vs. Pennant Group | Mid Atlantic vs. Encompass Health Corp | Mid Atlantic vs. Enhabit | Mid Atlantic vs. Concord Medical Services |
| Encore Capital vs. Guild Holdings Co | Encore Capital vs. Mr Cooper Group | Encore Capital vs. CNFinance Holdings | Encore Capital vs. Security National Financial |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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