Correlation Between Conifer Holdings, and 14040HCF0

Can any of the company-specific risk be diversified away by investing in both Conifer Holdings, and 14040HCF0 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 14040HCF0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Conifer Holdings, 975 and COF 395, you can compare the effects of market volatilities on Conifer Holdings, and 14040HCF0 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 14040HCF0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conifer Holdings, and 14040HCF0.

Diversification Opportunities for Conifer Holdings, and 14040HCF0

-0.63

Correlation Coefficient

Conifer Holdings,  14040HCF0

Excellent diversification

The 3 months correlation between Conifer and 14040HCF0 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Conifer Holdings, 975 and COF 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 14040HCF0 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, 975 are associated (or correlated) with 14040HCF0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 14040HCF0 has no effect on the direction of Conifer Holdings, i.e., Conifer Holdings, and 14040HCF0 go up and down completely randomly.

Pair Corralation between Conifer Holdings, and 14040HCF0

Assuming the 90 days horizon Conifer Holdings, 975 is expected to generate 1.2 times more return on investment than 14040HCF0. However, Conifer Holdings, is 1.2 times more volatile than COF 395. It trades about 0.1 of its potential returns per unit of risk. COF 395 is currently generating about -0.02 per unit of risk. If you would invest  1,859  in Conifer Holdings, 975 on October 24, 2024 and sell it today you would earn a total of  441.00  from holding Conifer Holdings, 975 or generate 23.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.34%
Values	Daily Returns

Conifer Holdings, 975  vs.  COF 395

Conifer Holdings, 975

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Conifer Holdings, 975 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Conifer Holdings, showed solid returns over the last few months and may actually be approaching a breakup point.

14040HCF0

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days COF 395 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for COF 395 investors.

Pair Trading with Conifer Holdings, and 14040HCF0

The main advantage of trading using opposite Conifer Holdings, and 14040HCF0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conifer Holdings, position performs unexpectedly, 14040HCF0 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 14040HCF0 will offset losses from the drop in 14040HCF0's long position.

The idea behind Conifer Holdings, 975 and COF 395 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.