Correlation Between Match and Palomar Holdings
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By analyzing existing cross correlation between Match Group 5625 and Palomar Holdings, you can compare the effects of market volatilities on Match and Palomar 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 Match with a short position of Palomar Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Match and Palomar Holdings.
Diversification Opportunities for Match and Palomar Holdings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Match and Palomar is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Match Group 5625 and Palomar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palomar Holdings and Match 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 Match Group 5625 are associated (or correlated) with Palomar Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palomar Holdings has no effect on the direction of Match i.e., Match and Palomar Holdings go up and down completely randomly.
Pair Corralation between Match and Palomar Holdings
Assuming the 90 days trading horizon Match Group 5625 is expected to generate 28.16 times more return on investment than Palomar Holdings. However, Match is 28.16 times more volatile than Palomar Holdings. It trades about 0.06 of its potential returns per unit of risk. Palomar Holdings is currently generating about 0.08 per unit of risk. If you would invest 9,428 in Match Group 5625 on August 31, 2024 and sell it today you would lose (165.00) from holding Match Group 5625 or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.03% |
| Values | Daily Returns |
Match Group 5625 vs. Palomar Holdings
Performance |
| Timeline |
| Match Group 5625 |
| Palomar Holdings |
Match and Palomar Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Match and Palomar Holdings
The main advantage of trading using opposite Match and Palomar Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Match position performs unexpectedly, Palomar 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 Palomar Holdings will offset losses from the drop in Palomar Holdings' long position.| Match vs. Morgan Stanley | Match vs. Ardelyx | Match vs. Spyre Therapeutics | Match vs. Acumen Pharmaceuticals |
| Palomar Holdings vs. Horace Mann Educators | Palomar Holdings vs. Kemper | Palomar Holdings vs. RLI Corp | Palomar Holdings vs. Global Indemnity PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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