Correlation Between Palomar Holdings and Big Tree
Can any of the company-specific risk be diversified away by investing in both Palomar Holdings and Big Tree 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 Palomar Holdings and Big Tree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palomar Holdings and Big Tree Group, you can compare the effects of market volatilities on Palomar Holdings and Big Tree 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 Palomar Holdings with a short position of Big Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palomar Holdings and Big Tree.
Diversification Opportunities for Palomar Holdings and Big Tree
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Palomar and Big is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Palomar Holdings and Big Tree Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Tree Group and Palomar Holdings 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 Palomar Holdings are associated (or correlated) with Big Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Tree Group has no effect on the direction of Palomar Holdings i.e., Palomar Holdings and Big Tree go up and down completely randomly.
Pair Corralation between Palomar Holdings and Big Tree
If you would invest 8,847 in Palomar Holdings on September 4, 2024 and sell it today you would earn a total of 2,056 from holding Palomar Holdings or generate 23.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Palomar Holdings vs. Big Tree Group
Performance |
| Timeline |
| Palomar Holdings |
| Big Tree Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Palomar Holdings and Big Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palomar Holdings and Big Tree
The main advantage of trading using opposite Palomar Holdings and Big Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palomar Holdings position performs unexpectedly, Big Tree 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 Big Tree will offset losses from the drop in Big Tree's long position.| Palomar Holdings vs. Horace Mann Educators | Palomar Holdings vs. Kemper | Palomar Holdings vs. RLI Corp | Palomar Holdings vs. Global Indemnity PLC |
| Big Tree vs. Akanda Corp | Big Tree vs. Bank of America | Big Tree vs. Black Hills | Big Tree vs. Sonida Senior Living |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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