Correlation Between N1RG34 and Credit Acceptance
Can any of the company-specific risk be diversified away by investing in both N1RG34 and Credit Acceptance 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 N1RG34 and Credit Acceptance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N1RG34 and Credit Acceptance, you can compare the effects of market volatilities on N1RG34 and Credit Acceptance 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 N1RG34 with a short position of Credit Acceptance. Check out your portfolio center. Please also check ongoing floating volatility patterns of N1RG34 and Credit Acceptance.
Diversification Opportunities for N1RG34 and Credit Acceptance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between N1RG34 and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding N1RG34 and Credit Acceptance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Acceptance and N1RG34 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 N1RG34 are associated (or correlated) with Credit Acceptance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Acceptance has no effect on the direction of N1RG34 i.e., N1RG34 and Credit Acceptance go up and down completely randomly.
Pair Corralation between N1RG34 and Credit Acceptance
If you would invest 56,430 in N1RG34 on September 22, 2024 and sell it today you would lose (311.00) from holding N1RG34 or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
N1RG34 vs. Credit Acceptance
Performance |
| Timeline |
| N1RG34 |
| Credit Acceptance |
N1RG34 and Credit Acceptance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N1RG34 and Credit Acceptance
The main advantage of trading using opposite N1RG34 and Credit Acceptance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N1RG34 position performs unexpectedly, Credit Acceptance 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 Credit Acceptance will offset losses from the drop in Credit Acceptance's long position.| N1RG34 vs. Credit Acceptance | N1RG34 vs. Zoom Video Communications | N1RG34 vs. Fidelity National Information | N1RG34 vs. Verizon Communications |
| Credit Acceptance vs. Visa Inc | Credit Acceptance vs. Mastercard Incorporated | Credit Acceptance vs. American Express | Credit Acceptance vs. PayPal 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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