Correlation Between Positive Physicians and Tiptree
Can any of the company-specific risk be diversified away by investing in both Positive Physicians and Tiptree 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 Positive Physicians and Tiptree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Positive Physicians Holdings and Tiptree, you can compare the effects of market volatilities on Positive Physicians and Tiptree 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 Positive Physicians with a short position of Tiptree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Positive Physicians and Tiptree.
Diversification Opportunities for Positive Physicians and Tiptree
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Positive and Tiptree is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Positive Physicians Holdings and Tiptree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiptree and Positive Physicians 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 Positive Physicians Holdings are associated (or correlated) with Tiptree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiptree has no effect on the direction of Positive Physicians i.e., Positive Physicians and Tiptree go up and down completely randomly.
Pair Corralation between Positive Physicians and Tiptree
If you would invest 1,999 in Tiptree on August 24, 2024 and sell it today you would earn a total of 136.00 from holding Tiptree or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Positive Physicians Holdings vs. Tiptree
Performance |
| Timeline |
| Positive Physicians |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tiptree |
Positive Physicians and Tiptree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Positive Physicians and Tiptree
The main advantage of trading using opposite Positive Physicians and Tiptree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Positive Physicians position performs unexpectedly, Tiptree 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 Tiptree will offset losses from the drop in Tiptree's long position.| Positive Physicians vs. Ambac Financial Group | Positive Physicians vs. AMERISAFE | Positive Physicians vs. Assured Guaranty | Positive Physicians vs. Essent Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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