Correlation Between Piper Sandler and Curo Group
Can any of the company-specific risk be diversified away by investing in both Piper Sandler and Curo Group 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 Piper Sandler and Curo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piper Sandler Companies and Curo Group Holdings, you can compare the effects of market volatilities on Piper Sandler and Curo Group 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 Piper Sandler with a short position of Curo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piper Sandler and Curo Group.
Diversification Opportunities for Piper Sandler and Curo Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Piper and Curo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Piper Sandler Companies and Curo Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curo Group Holdings and Piper Sandler 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 Piper Sandler Companies are associated (or correlated) with Curo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curo Group Holdings has no effect on the direction of Piper Sandler i.e., Piper Sandler and Curo Group go up and down completely randomly.
Pair Corralation between Piper Sandler and Curo Group
Given the investment horizon of 90 days Piper Sandler Companies is expected to generate 0.3 times more return on investment than Curo Group. However, Piper Sandler Companies is 3.33 times less risky than Curo Group. It trades about 0.1 of its potential returns per unit of risk. Curo Group Holdings is currently generating about -0.05 per unit of risk. If you would invest 13,423 in Piper Sandler Companies on August 24, 2024 and sell it today you would earn a total of 20,611 from holding Piper Sandler Companies or generate 153.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 32.06% |
| Values | Daily Returns |
Piper Sandler Companies vs. Curo Group Holdings
Performance |
| Timeline |
| Piper Sandler Companies |
| Curo Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Piper Sandler and Curo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piper Sandler and Curo Group
The main advantage of trading using opposite Piper Sandler and Curo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piper Sandler position performs unexpectedly, Curo Group 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 Curo Group will offset losses from the drop in Curo Group's long position.| Piper Sandler vs. Perella Weinberg Partners | Piper Sandler vs. Evercore Partners | Piper Sandler vs. Lazard | Piper Sandler vs. Moelis Co |
| Curo Group vs. Enova International | Curo Group vs. Orix Corp Ads | Curo Group vs. Consumer Portfolio Services | Curo Group vs. World Acceptance |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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