Correlation Between Till Capital and American Financial
Can any of the company-specific risk be diversified away by investing in both Till Capital and American 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 Till Capital and American Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Till Capital and American Financial Group, you can compare the effects of market volatilities on Till Capital and American 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 Till Capital with a short position of American Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Till Capital and American Financial.
Diversification Opportunities for Till Capital and American Financial
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Till and American is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Till Capital and American Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Financial and Till Capital 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 Till Capital are associated (or correlated) with American Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Financial has no effect on the direction of Till Capital i.e., Till Capital and American Financial go up and down completely randomly.
Pair Corralation between Till Capital and American Financial
If you would invest 460.00 in Till Capital on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Till Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Till Capital vs. American Financial Group
Performance |
| Timeline |
| Till Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Financial |
Till Capital and American Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Till Capital and American Financial
The main advantage of trading using opposite Till Capital and American Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Till Capital position performs unexpectedly, American 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 American Financial will offset losses from the drop in American Financial's long position.| Till Capital vs. Nuvalent | Till Capital vs. Marti Technologies | Till Capital vs. Usio Inc | Till Capital vs. Stratasys |
| American Financial vs. American Financial Group | American Financial vs. American Financial Group | American Financial vs. Aegon Funding | American Financial vs. CMS Energy Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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