Correlation Between Reliance Global and Crawford
Can any of the company-specific risk be diversified away by investing in both Reliance Global and Crawford 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 Reliance Global and Crawford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reliance Global Group and Crawford Company, you can compare the effects of market volatilities on Reliance Global and Crawford 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 Reliance Global with a short position of Crawford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reliance Global and Crawford.
Diversification Opportunities for Reliance Global and Crawford
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Reliance and Crawford is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Reliance Global Group and Crawford Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford and Reliance Global 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 Reliance Global Group are associated (or correlated) with Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford has no effect on the direction of Reliance Global i.e., Reliance Global and Crawford go up and down completely randomly.
Pair Corralation between Reliance Global and Crawford
Given the investment horizon of 90 days Reliance Global Group is expected to under-perform the Crawford. In addition to that, Reliance Global is 4.02 times more volatile than Crawford Company. It trades about -0.03 of its total potential returns per unit of risk. Crawford Company is currently generating about 0.07 per unit of volatility. If you would invest 553.00 in Crawford Company on November 9, 2024 and sell it today you would earn a total of 671.00 from holding Crawford Company or generate 121.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reliance Global Group vs. Crawford Company
Performance |
| Timeline |
| Reliance Global Group |
| Crawford |
Reliance Global and Crawford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reliance Global and Crawford
The main advantage of trading using opposite Reliance Global and Crawford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reliance Global position performs unexpectedly, Crawford 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 Crawford will offset losses from the drop in Crawford's long position.| Reliance Global vs. Huize Holding | Reliance Global vs. Selectquote | Reliance Global vs. eHealth | Reliance Global vs. GoHealth |
| Crawford vs. CorVel Corp | Crawford vs. Erie Indemnity | Crawford vs. Willis Towers Watson | Crawford vs. Crawford Company |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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