Correlation Between 521865BC8 and Encore Capital
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By analyzing existing cross correlation between LEA 26 15 JAN 32 and Encore Capital Group, you can compare the effects of market volatilities on 521865BC8 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 521865BC8 with a short position of Encore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of 521865BC8 and Encore Capital.
Diversification Opportunities for 521865BC8 and Encore Capital
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 521865BC8 and Encore is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding LEA 26 15 JAN 32 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 521865BC8 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 LEA 26 15 JAN 32 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 521865BC8 i.e., 521865BC8 and Encore Capital go up and down completely randomly.
Pair Corralation between 521865BC8 and Encore Capital
Assuming the 90 days trading horizon LEA 26 15 JAN 32 is expected to generate 0.54 times more return on investment than Encore Capital. However, LEA 26 15 JAN 32 is 1.86 times less risky than Encore Capital. It trades about 0.01 of its potential returns per unit of risk. Encore Capital Group is currently generating about 0.0 per unit of risk. If you would invest 7,889 in LEA 26 15 JAN 32 on September 12, 2024 and sell it today you would earn a total of 65.00 from holding LEA 26 15 JAN 32 or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.4% |
| Values | Daily Returns |
LEA 26 15 JAN 32 vs. Encore Capital Group
Performance |
| Timeline |
| LEA 26 15 |
| Encore Capital Group |
521865BC8 and Encore Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 521865BC8 and Encore Capital
The main advantage of trading using opposite 521865BC8 and Encore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 521865BC8 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.| 521865BC8 vs. AEP TEX INC | 521865BC8 vs. US BANK NATIONAL | 521865BC8 vs. Alphabet Inc Class C | 521865BC8 vs. InMode |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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