Correlation Between 12654AAA9 and Cincinnati Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between US12654AAA97 and Cincinnati Financial, you can compare the effects of market volatilities on 12654AAA9 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 12654AAA9 with a short position of Cincinnati Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 12654AAA9 and Cincinnati Financial.
Diversification Opportunities for 12654AAA9 and Cincinnati Financial
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 12654AAA9 and Cincinnati is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding US12654AAA97 and Cincinnati Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cincinnati Financial and 12654AAA9 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 US12654AAA97 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 12654AAA9 i.e., 12654AAA9 and Cincinnati Financial go up and down completely randomly.
Pair Corralation between 12654AAA9 and Cincinnati Financial
Assuming the 90 days trading horizon US12654AAA97 is expected to under-perform the Cincinnati Financial. But the bond apears to be less risky and, when comparing its historical volatility, US12654AAA97 is 2.15 times less risky than Cincinnati Financial. The bond trades about -0.08 of its potential returns per unit of risk. The Cincinnati Financial is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 13,738 in Cincinnati Financial on September 4, 2024 and sell it today you would earn a total of 1,911 from holding Cincinnati Financial or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.25% |
| Values | Daily Returns |
US12654AAA97 vs. Cincinnati Financial
Performance |
| Timeline |
| US12654AAA97 |
| Cincinnati Financial |
12654AAA9 and Cincinnati Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 12654AAA9 and Cincinnati Financial
The main advantage of trading using opposite 12654AAA9 and Cincinnati Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 12654AAA9 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.| 12654AAA9 vs. Cincinnati Financial | 12654AAA9 vs. Trupanion | 12654AAA9 vs. CarsalesCom Ltd ADR | 12654AAA9 vs. Marchex |
| Cincinnati Financial vs. Progressive Corp | Cincinnati Financial vs. The Travelers Companies | Cincinnati Financial vs. Chubb | Cincinnati Financial vs. W R Berkley |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |