Correlation Between MARKEL and Verizon Communications
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By analyzing existing cross correlation between MARKEL P 43 and Verizon Communications, you can compare the effects of market volatilities on MARKEL and Verizon Communications 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 MARKEL with a short position of Verizon Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKEL and Verizon Communications.
Diversification Opportunities for MARKEL and Verizon Communications
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MARKEL and Verizon is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding MARKEL P 43 and Verizon Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verizon Communications and MARKEL 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 MARKEL P 43 are associated (or correlated) with Verizon Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verizon Communications has no effect on the direction of MARKEL i.e., MARKEL and Verizon Communications go up and down completely randomly.
Pair Corralation between MARKEL and Verizon Communications
Assuming the 90 days trading horizon MARKEL P 43 is expected to generate 94.73 times more return on investment than Verizon Communications. However, MARKEL is 94.73 times more volatile than Verizon Communications. It trades about 0.12 of its potential returns per unit of risk. Verizon Communications is currently generating about 0.05 per unit of risk. If you would invest 8,278 in MARKEL P 43 on September 3, 2024 and sell it today you would lose (26.00) from holding MARKEL P 43 or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 23.23% |
| Values | Daily Returns |
MARKEL P 43 vs. Verizon Communications
Performance |
| Timeline |
| MARKEL P 43 |
| Verizon Communications |
MARKEL and Verizon Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MARKEL and Verizon Communications
The main advantage of trading using opposite MARKEL and Verizon Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKEL position performs unexpectedly, Verizon Communications 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 Verizon Communications will offset losses from the drop in Verizon Communications' long position.| MARKEL vs. Cincinnati Financial | MARKEL vs. Trupanion | MARKEL vs. ServiceNow | MARKEL vs. Aspen Insurance Holdings |
| Verizon Communications vs. Highway Holdings Limited | Verizon Communications vs. QCR Holdings | Verizon Communications vs. Partner Communications | Verizon Communications vs. Acumen Pharmaceuticals |
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 Stocks Directory module to find actively traded stocks across global markets.
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