Correlation Between TAISEM and Encore Capital
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By analyzing existing cross correlation between TAISEM 175 25 OCT 26 and Encore Capital Group, you can compare the effects of market volatilities on TAISEM 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 TAISEM with a short position of Encore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAISEM and Encore Capital.
Diversification Opportunities for TAISEM and Encore Capital
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between TAISEM and Encore is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding TAISEM 175 25 OCT 26 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 TAISEM 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 TAISEM 175 25 OCT 26 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 TAISEM i.e., TAISEM and Encore Capital go up and down completely randomly.
Pair Corralation between TAISEM and Encore Capital
Assuming the 90 days trading horizon TAISEM 175 25 OCT 26 is expected to under-perform the Encore Capital. But the bond apears to be less risky and, when comparing its historical volatility, TAISEM 175 25 OCT 26 is 8.29 times less risky than Encore Capital. The bond trades about -0.09 of its potential returns per unit of risk. The Encore Capital Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,568 in Encore Capital Group on September 1, 2024 and sell it today you would earn a total of 351.00 from holding Encore Capital Group or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
TAISEM 175 25 OCT 26 vs. Encore Capital Group
Performance |
| Timeline |
| TAISEM 175 25 |
| Encore Capital Group |
TAISEM and Encore Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAISEM and Encore Capital
The main advantage of trading using opposite TAISEM and Encore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAISEM 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.| TAISEM vs. Logan Ridge Finance | TAISEM vs. US Global Investors | TAISEM vs. Barrick Gold Corp | TAISEM vs. Siriuspoint |
| Encore Capital vs. 360 Finance | Encore Capital vs. Atlanticus Holdings | Encore Capital vs. Qudian Inc | Encore Capital vs. Enova International |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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