Correlation Between Safety Insurance and CVR Medical
Can any of the company-specific risk be diversified away by investing in both Safety Insurance and CVR Medical 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 Safety Insurance and CVR Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safety Insurance Group and CVR Medical Corp, you can compare the effects of market volatilities on Safety Insurance and CVR Medical 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 Safety Insurance with a short position of CVR Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safety Insurance and CVR Medical.
Diversification Opportunities for Safety Insurance and CVR Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Safety and CVR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Safety Insurance Group and CVR Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR Medical Corp and Safety Insurance 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 Safety Insurance Group are associated (or correlated) with CVR Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVR Medical Corp has no effect on the direction of Safety Insurance i.e., Safety Insurance and CVR Medical go up and down completely randomly.
Pair Corralation between Safety Insurance and CVR Medical
If you would invest 1.35 in CVR Medical Corp on November 3, 2024 and sell it today you would earn a total of 0.00 from holding CVR Medical Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Safety Insurance Group vs. CVR Medical Corp
Performance |
| Timeline |
| Safety Insurance |
| CVR Medical Corp |
Safety Insurance and CVR Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safety Insurance and CVR Medical
The main advantage of trading using opposite Safety Insurance and CVR Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safety Insurance position performs unexpectedly, CVR Medical 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 CVR Medical will offset losses from the drop in CVR Medical's long position.| Safety Insurance vs. ALERION CLEANPOWER | Safety Insurance vs. Indutrade AB | Safety Insurance vs. Clean Energy Fuels | Safety Insurance vs. Titan Machinery |
| CVR Medical vs. SALESFORCE INC CDR | CVR Medical vs. CARSALESCOM | CVR Medical vs. BOSTON BEER A | CVR Medical vs. CarsalesCom |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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