Correlation Between Palomar Holdings and AMAZONCOM
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By analyzing existing cross correlation between Palomar Holdings and AMAZONCOM INC, you can compare the effects of market volatilities on Palomar Holdings and AMAZONCOM 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 AMAZONCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palomar Holdings and AMAZONCOM.
Diversification Opportunities for Palomar Holdings and AMAZONCOM
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Palomar and AMAZONCOM is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Palomar Holdings and AMAZONCOM INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAZONCOM INC 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 AMAZONCOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAZONCOM INC has no effect on the direction of Palomar Holdings i.e., Palomar Holdings and AMAZONCOM go up and down completely randomly.
Pair Corralation between Palomar Holdings and AMAZONCOM
Given the investment horizon of 90 days Palomar Holdings is expected to generate 2.66 times more return on investment than AMAZONCOM. However, Palomar Holdings is 2.66 times more volatile than AMAZONCOM INC. It trades about 0.08 of its potential returns per unit of risk. AMAZONCOM INC is currently generating about 0.0 per unit of risk. If you would invest 4,837 in Palomar Holdings on August 31, 2024 and sell it today you would earn a total of 5,993 from holding Palomar Holdings or generate 123.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.16% |
| Values | Daily Returns |
Palomar Holdings vs. AMAZONCOM INC
Performance |
| Timeline |
| Palomar Holdings |
| AMAZONCOM INC |
Palomar Holdings and AMAZONCOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palomar Holdings and AMAZONCOM
The main advantage of trading using opposite Palomar Holdings and AMAZONCOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palomar Holdings position performs unexpectedly, AMAZONCOM 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 AMAZONCOM will offset losses from the drop in AMAZONCOM's long position.| Palomar Holdings vs. Horace Mann Educators | Palomar Holdings vs. Kemper | Palomar Holdings vs. RLI Corp | Palomar Holdings vs. Global Indemnity PLC |
| AMAZONCOM vs. Dalata Hotel Group | AMAZONCOM vs. Palomar Holdings | AMAZONCOM vs. Kinsale Capital Group | AMAZONCOM vs. Cincinnati 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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