Correlation Between Palomar Holdings and TELUS
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By analyzing existing cross correlation between Palomar Holdings and TELUS P 37, you can compare the effects of market volatilities on Palomar Holdings and TELUS 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 TELUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palomar Holdings and TELUS.
Diversification Opportunities for Palomar Holdings and TELUS
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Palomar and TELUS is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Palomar Holdings and TELUS P 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELUS P 37 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 TELUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELUS P 37 has no effect on the direction of Palomar Holdings i.e., Palomar Holdings and TELUS go up and down completely randomly.
Pair Corralation between Palomar Holdings and TELUS
Given the investment horizon of 90 days Palomar Holdings is expected to generate 11.25 times more return on investment than TELUS. However, Palomar Holdings is 11.25 times more volatile than TELUS P 37. It trades about 0.09 of its potential returns per unit of risk. TELUS P 37 is currently generating about -0.04 per unit of risk. If you would invest 10,438 in Palomar Holdings on November 3, 2024 and sell it today you would earn a total of 349.00 from holding Palomar Holdings or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Palomar Holdings vs. TELUS P 37
Performance |
| Timeline |
| Palomar Holdings |
| TELUS P 37 |
Palomar Holdings and TELUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palomar Holdings and TELUS
The main advantage of trading using opposite Palomar Holdings and TELUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palomar Holdings position performs unexpectedly, TELUS 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 TELUS will offset losses from the drop in TELUS's long position.| Palomar Holdings vs. Horace Mann Educators | Palomar Holdings vs. Kemper | Palomar Holdings vs. RLI Corp | Palomar Holdings vs. Global Indemnity PLC |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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