Correlation Between 37045XDU7 and Encore Capital
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By analyzing existing cross correlation between GM 38 07 APR 25 and Encore Capital Group, you can compare the effects of market volatilities on 37045XDU7 and Encore Capital 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 37045XDU7 with a short position of Encore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37045XDU7 and Encore Capital.
Diversification Opportunities for 37045XDU7 and Encore Capital
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 37045XDU7 and Encore is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding GM 38 07 APR 25 and Encore Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Encore Capital Group and 37045XDU7 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 GM 38 07 APR 25 are associated (or correlated) with Encore Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Encore Capital Group has no effect on the direction of 37045XDU7 i.e., 37045XDU7 and Encore Capital go up and down completely randomly.
Pair Corralation between 37045XDU7 and Encore Capital
Assuming the 90 days trading horizon GM 38 07 APR 25 is expected to under-perform the Encore Capital. But the bond apears to be less risky and, when comparing its historical volatility, GM 38 07 APR 25 is 3.29 times less risky than Encore Capital. The bond trades about -0.2 of its potential returns per unit of risk. The Encore Capital Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 4,700 in Encore Capital Group on November 3, 2024 and sell it today you would earn a total of 250.00 from holding Encore Capital Group or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GM 38 07 APR 25 vs. Encore Capital Group
Performance |
| Timeline |
| 37045XDU7 |
| Encore Capital Group |
37045XDU7 and Encore Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 37045XDU7 and Encore Capital
The main advantage of trading using opposite 37045XDU7 and Encore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37045XDU7 position performs unexpectedly, Encore Capital 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 Encore Capital will offset losses from the drop in Encore Capital's long position.| 37045XDU7 vs. American Hotel Income | 37045XDU7 vs. Starbucks | 37045XDU7 vs. One Group Hospitality | 37045XDU7 vs. Mattel Inc |
| Encore Capital vs. Guild Holdings Co | Encore Capital vs. Mr Cooper Group | Encore Capital vs. CNFinance Holdings | Encore Capital vs. Security National Financial |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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