Correlation Between Conifer Holdings and B Riley

Can any of the company-specific risk be diversified away by investing in both Conifer Holdings and B Riley 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 Conifer Holdings and B Riley into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Conifer Holdings Senior and B Riley Financial, you can compare the effects of market volatilities on Conifer Holdings and B Riley 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 Conifer Holdings with a short position of B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conifer Holdings and B Riley.

Diversification Opportunities for Conifer Holdings and B Riley

0.52

Correlation Coefficient

Conifer Holdings  B Riley

Very weak diversification

The 3 months correlation between Conifer and RILYN is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Conifer Holdings Senior and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial and Conifer Holdings 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 Conifer Holdings Senior are associated (or correlated) with B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of Conifer Holdings i.e., Conifer Holdings and B Riley go up and down completely randomly.

Pair Corralation between Conifer Holdings and B Riley

If you would invest  2,203  in Conifer Holdings Senior on October 16, 2024 and sell it today you would earn a total of  0.00  from holding Conifer Holdings Senior or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	2.56%
Values	Daily Returns

Conifer Holdings Senior  vs.  B Riley Financial

Conifer Holdings Senior

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Conifer Holdings Senior has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Conifer Holdings is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

B Riley Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days B Riley Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, B Riley is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Conifer Holdings and B Riley

The main advantage of trading using opposite Conifer Holdings and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conifer Holdings position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley's long position.

The idea behind Conifer Holdings Senior and B Riley Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.