Correlation Between Verisk Analytics and CRA International
Can any of the company-specific risk be diversified away by investing in both Verisk Analytics and CRA International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Verisk Analytics and CRA International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verisk Analytics and CRA International, you can compare the effects of market volatilities on Verisk Analytics and CRA International 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 Verisk Analytics with a short position of CRA International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verisk Analytics and CRA International.
Diversification Opportunities for Verisk Analytics and CRA International
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Verisk and CRA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Verisk Analytics and CRA International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRA International and Verisk Analytics 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 Verisk Analytics are associated (or correlated) with CRA International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRA International has no effect on the direction of Verisk Analytics i.e., Verisk Analytics and CRA International go up and down completely randomly.
Pair Corralation between Verisk Analytics and CRA International
Given the investment horizon of 90 days Verisk Analytics is expected to generate 0.44 times more return on investment than CRA International. However, Verisk Analytics is 2.27 times less risky than CRA International. It trades about 0.39 of its potential returns per unit of risk. CRA International is currently generating about 0.03 per unit of risk. If you would invest 26,286 in Verisk Analytics on August 27, 2024 and sell it today you would earn a total of 2,787 from holding Verisk Analytics or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Verisk Analytics vs. CRA International
Performance |
| Timeline |
| Verisk Analytics |
| CRA International |
Verisk Analytics and CRA International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verisk Analytics and CRA International
The main advantage of trading using opposite Verisk Analytics and CRA International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verisk Analytics position performs unexpectedly, CRA International 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 CRA International will offset losses from the drop in CRA International's long position.| Verisk Analytics vs. Franklin Covey | Verisk Analytics vs. TransUnion | Verisk Analytics vs. ICF International | Verisk Analytics vs. Huron Consulting Group |
| CRA International vs. Franklin Covey | CRA International vs. ICF International | CRA International vs. Huron Consulting Group | CRA International vs. FTI Consulting |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |