Correlation Between CINCINNATI and Tootsie Roll
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By analyzing existing cross correlation between CINCINNATI FINL P and Tootsie Roll Industries, you can compare the effects of market volatilities on CINCINNATI and Tootsie Roll 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 CINCINNATI with a short position of Tootsie Roll. Check out your portfolio center. Please also check ongoing floating volatility patterns of CINCINNATI and Tootsie Roll.
Diversification Opportunities for CINCINNATI and Tootsie Roll
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between CINCINNATI and Tootsie is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding CINCINNATI FINL P and Tootsie Roll Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tootsie Roll Industries and CINCINNATI 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 CINCINNATI FINL P are associated (or correlated) with Tootsie Roll. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tootsie Roll Industries has no effect on the direction of CINCINNATI i.e., CINCINNATI and Tootsie Roll go up and down completely randomly.
Pair Corralation between CINCINNATI and Tootsie Roll
Assuming the 90 days trading horizon CINCINNATI FINL P is expected to generate 75.82 times more return on investment than Tootsie Roll. However, CINCINNATI is 75.82 times more volatile than Tootsie Roll Industries. It trades about 0.1 of its potential returns per unit of risk. Tootsie Roll Industries is currently generating about -0.02 per unit of risk. If you would invest 10,624 in CINCINNATI FINL P on September 3, 2024 and sell it today you would earn a total of 347.00 from holding CINCINNATI FINL P or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.69% |
| Values | Daily Returns |
CINCINNATI FINL P vs. Tootsie Roll Industries
Performance |
| Timeline |
| CINCINNATI FINL P |
| Tootsie Roll Industries |
CINCINNATI and Tootsie Roll Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CINCINNATI and Tootsie Roll
The main advantage of trading using opposite CINCINNATI and Tootsie Roll positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CINCINNATI position performs unexpectedly, Tootsie Roll 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 Tootsie Roll will offset losses from the drop in Tootsie Roll's long position.| CINCINNATI vs. Albertsons Companies | CINCINNATI vs. GE Vernova LLC | CINCINNATI vs. One Gas | CINCINNATI vs. Suburban Propane Partners |
| Tootsie Roll vs. Mondelez International | Tootsie Roll vs. Hershey Co | Tootsie Roll vs. Rocky Mountain Chocolate | Tootsie Roll vs. Chocoladefabriken Lindt Sprngli |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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