Correlation Between TRADEDOUBLER and EMPLOYERS HLDGS
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and EMPLOYERS HLDGS 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 TRADEDOUBLER and EMPLOYERS HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and EMPLOYERS HLDGS DL, you can compare the effects of market volatilities on TRADEDOUBLER and EMPLOYERS HLDGS 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 TRADEDOUBLER with a short position of EMPLOYERS HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and EMPLOYERS HLDGS.
Diversification Opportunities for TRADEDOUBLER and EMPLOYERS HLDGS
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TRADEDOUBLER and EMPLOYERS is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and EMPLOYERS HLDGS DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMPLOYERS HLDGS DL and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with EMPLOYERS HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMPLOYERS HLDGS DL has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and EMPLOYERS HLDGS go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and EMPLOYERS HLDGS
Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to under-perform the EMPLOYERS HLDGS. In addition to that, TRADEDOUBLER is 2.66 times more volatile than EMPLOYERS HLDGS DL. It trades about -0.01 of its total potential returns per unit of risk. EMPLOYERS HLDGS DL is currently generating about 0.11 per unit of volatility. If you would invest 3,366 in EMPLOYERS HLDGS DL on September 14, 2024 and sell it today you would earn a total of 1,574 from holding EMPLOYERS HLDGS DL or generate 46.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. EMPLOYERS HLDGS DL
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| EMPLOYERS HLDGS DL |
TRADEDOUBLER and EMPLOYERS HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and EMPLOYERS HLDGS
The main advantage of trading using opposite TRADEDOUBLER and EMPLOYERS HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, EMPLOYERS HLDGS 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 EMPLOYERS HLDGS will offset losses from the drop in EMPLOYERS HLDGS's long position.| TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. SIVERS SEMICONDUCTORS AB | TRADEDOUBLER vs. NorAm Drilling AS | TRADEDOUBLER vs. Norsk Hydro ASA |
| EMPLOYERS HLDGS vs. Flutter Entertainment PLC | EMPLOYERS HLDGS vs. XLMedia PLC | EMPLOYERS HLDGS vs. TOWNSQUARE MEDIA INC | EMPLOYERS HLDGS vs. TRADEDOUBLER AB SK |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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