Correlation Between CARLISLE and Employers Holdings
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By analyzing existing cross correlation between CARLISLE INC 375 and Employers Holdings, you can compare the effects of market volatilities on CARLISLE and Employers Holdings 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 CARLISLE with a short position of Employers Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARLISLE and Employers Holdings.
Diversification Opportunities for CARLISLE and Employers Holdings
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CARLISLE and Employers is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding CARLISLE INC 375 and Employers Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Employers Holdings and CARLISLE 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 CARLISLE INC 375 are associated (or correlated) with Employers Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Employers Holdings has no effect on the direction of CARLISLE i.e., CARLISLE and Employers Holdings go up and down completely randomly.
Pair Corralation between CARLISLE and Employers Holdings
Assuming the 90 days trading horizon CARLISLE INC 375 is expected to under-perform the Employers Holdings. But the bond apears to be less risky and, when comparing its historical volatility, CARLISLE INC 375 is 3.12 times less risky than Employers Holdings. The bond trades about 0.0 of its potential returns per unit of risk. The Employers Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,790 in Employers Holdings on September 14, 2024 and sell it today you would earn a total of 1,483 from holding Employers Holdings or generate 39.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.97% |
| Values | Daily Returns |
CARLISLE INC 375 vs. Employers Holdings
Performance |
| Timeline |
| CARLISLE INC 375 |
| Employers Holdings |
CARLISLE and Employers Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARLISLE and Employers Holdings
The main advantage of trading using opposite CARLISLE and Employers Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARLISLE position performs unexpectedly, Employers Holdings 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 Holdings will offset losses from the drop in Employers Holdings' long position.| CARLISLE vs. Western Digital | CARLISLE vs. BioNTech SE | CARLISLE vs. CECO Environmental Corp | CARLISLE vs. Forsys Metals Corp |
| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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