Correlation Between SAFEROADS HLDGS and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both SAFEROADS HLDGS and Selective Insurance 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 Selective Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAFEROADS HLDGS and Selective Insurance Group, you can compare the effects of market volatilities on SAFEROADS HLDGS and Selective Insurance 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 Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAFEROADS HLDGS and Selective Insurance.
Diversification Opportunities for SAFEROADS HLDGS and Selective Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAFEROADS and Selective is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAFEROADS HLDGS and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance 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 Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of SAFEROADS HLDGS i.e., SAFEROADS HLDGS and Selective Insurance go up and down completely randomly.
Pair Corralation between SAFEROADS HLDGS and Selective Insurance
If you would invest 8,279 in Selective Insurance Group on October 26, 2024 and sell it today you would earn a total of 321.00 from holding Selective Insurance Group or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAFEROADS HLDGS vs. Selective Insurance Group
Performance |
| Timeline |
| SAFEROADS HLDGS |
| Selective Insurance |
SAFEROADS HLDGS and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAFEROADS HLDGS and Selective Insurance
The main advantage of trading using opposite SAFEROADS HLDGS and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAFEROADS HLDGS position performs unexpectedly, Selective Insurance 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 Selective Insurance will offset losses from the drop in Selective Insurance's long position.| SAFEROADS HLDGS vs. Apple Inc | SAFEROADS HLDGS vs. Apple Inc | SAFEROADS HLDGS vs. Apple Inc | SAFEROADS HLDGS vs. Apple Inc |
| Selective Insurance vs. Spirent Communications plc | Selective Insurance vs. Sumitomo Mitsui Construction | Selective Insurance vs. AGRICULTBK HADR25 YC | Selective Insurance vs. ALEFARM BREWING DK 05 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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