Correlation Between Employers Holdings and INTNED

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

By analyzing existing cross correlation between Employers Holdings and INTNED 61032 28 MAR 26, you can compare the effects of market volatilities on Employers Holdings and INTNED 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 Employers Holdings with a short position of INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and INTNED.

Diversification Opportunities for Employers Holdings and INTNED

-0.02

Correlation Coefficient

Employers Holdings  INTNED

Good diversification

The 3 months correlation between Employers and INTNED is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and INTNED 61032 28 MAR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 61032 28 and Employers 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 Employers Holdings are associated (or correlated) with INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 61032 28 has no effect on the direction of Employers Holdings i.e., Employers Holdings and INTNED go up and down completely randomly.

Pair Corralation between Employers Holdings and INTNED

Considering the 90-day investment horizon Employers Holdings is expected to under-perform the INTNED. In addition to that, Employers Holdings is 1.7 times more volatile than INTNED 61032 28 MAR 26. It trades about -0.09 of its total potential returns per unit of risk. INTNED 61032 28 MAR 26 is currently generating about -0.02 per unit of volatility. If you would invest  10,089  in INTNED 61032 28 MAR 26 on December 6, 2024 and sell it today you would lose (44.00) from holding INTNED 61032 28 MAR 26 or give up 0.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	36.67%
Values	Daily Returns

Employers Holdings  vs.  INTNED 61032 28 MAR 26

Employers Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Employers Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

INTNED 61032 28

Risk-Adjusted Performance

Very Weak

Over the last 90 days INTNED 61032 28 MAR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Employers Holdings and INTNED

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

The idea behind Employers Holdings and INTNED 61032 28 MAR 26 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 Global Correlations module to find global opportunities by holding instruments from different markets.