Correlation Between SAFEROADS HLDGS and Cincinnati Financial
Can any of the company-specific risk be diversified away by investing in both SAFEROADS HLDGS and Cincinnati Financial 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 SAFEROADS HLDGS and Cincinnati Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAFEROADS HLDGS and Cincinnati Financial, you can compare the effects of market volatilities on SAFEROADS HLDGS and Cincinnati Financial 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 SAFEROADS HLDGS with a short position of Cincinnati Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAFEROADS HLDGS and Cincinnati Financial.
Diversification Opportunities for SAFEROADS HLDGS and Cincinnati Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAFEROADS and Cincinnati is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAFEROADS HLDGS and Cincinnati Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cincinnati Financial and SAFEROADS HLDGS 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 SAFEROADS HLDGS are associated (or correlated) with Cincinnati Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cincinnati Financial has no effect on the direction of SAFEROADS HLDGS i.e., SAFEROADS HLDGS and Cincinnati Financial go up and down completely randomly.
Pair Corralation between SAFEROADS HLDGS and Cincinnati Financial
If you would invest 13,140 in Cincinnati Financial on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Cincinnati Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
SAFEROADS HLDGS vs. Cincinnati Financial
Performance |
| Timeline |
| SAFEROADS HLDGS |
| Cincinnati Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SAFEROADS HLDGS and Cincinnati Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAFEROADS HLDGS and Cincinnati Financial
The main advantage of trading using opposite SAFEROADS HLDGS and Cincinnati Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAFEROADS HLDGS position performs unexpectedly, Cincinnati Financial 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 Cincinnati Financial will offset losses from the drop in Cincinnati Financial's long position.| SAFEROADS HLDGS vs. Sabre Insurance Group | SAFEROADS HLDGS vs. Magic Software Enterprises | SAFEROADS HLDGS vs. Kingdee International Software | SAFEROADS HLDGS vs. CyberArk Software |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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