Correlation Between 879360AD7 and Employers Holdings
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By analyzing existing cross correlation between TDY 225 01 APR 28 and Employers Holdings, you can compare the effects of market volatilities on 879360AD7 and Employers 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 879360AD7 with a short position of Employers Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 879360AD7 and Employers Holdings.
Diversification Opportunities for 879360AD7 and Employers Holdings
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 879360AD7 and Employers is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding TDY 225 01 APR 28 and Employers Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Employers Holdings and 879360AD7 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 TDY 225 01 APR 28 are associated (or correlated) with Employers Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Employers Holdings has no effect on the direction of 879360AD7 i.e., 879360AD7 and Employers Holdings go up and down completely randomly.
Pair Corralation between 879360AD7 and Employers Holdings
Assuming the 90 days trading horizon 879360AD7 is expected to generate 8.01 times less return on investment than Employers Holdings. But when comparing it to its historical volatility, TDY 225 01 APR 28 is 3.54 times less risky than Employers Holdings. It trades about 0.02 of its potential returns per unit of risk. Employers Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,150 in Employers Holdings on August 27, 2024 and sell it today you would earn a total of 1,175 from holding Employers Holdings or generate 28.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.72% |
| Values | Daily Returns |
TDY 225 01 APR 28 vs. Employers Holdings
Performance |
| Timeline |
| TDY 225 01 |
| Employers Holdings |
879360AD7 and Employers Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 879360AD7 and Employers Holdings
The main advantage of trading using opposite 879360AD7 and Employers Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 879360AD7 position performs unexpectedly, Employers 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 Employers Holdings will offset losses from the drop in Employers Holdings' long position.| 879360AD7 vs. Employers Holdings | 879360AD7 vs. MGIC Investment Corp | 879360AD7 vs. Palomar Holdings | 879360AD7 vs. Coursera |
| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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