Correlation Between Palomar Holdings and INGERSOLL
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By analyzing existing cross correlation between Palomar Holdings and INGERSOLL RAND GLOBAL HLDG, you can compare the effects of market volatilities on Palomar Holdings and INGERSOLL 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 Palomar Holdings with a short position of INGERSOLL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palomar Holdings and INGERSOLL.
Diversification Opportunities for Palomar Holdings and INGERSOLL
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Palomar and INGERSOLL is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Palomar Holdings and INGERSOLL RAND GLOBAL HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INGERSOLL RAND GLOBAL and Palomar 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 Palomar Holdings are associated (or correlated) with INGERSOLL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INGERSOLL RAND GLOBAL has no effect on the direction of Palomar Holdings i.e., Palomar Holdings and INGERSOLL go up and down completely randomly.
Pair Corralation between Palomar Holdings and INGERSOLL
Given the investment horizon of 90 days Palomar Holdings is expected to generate 2.08 times more return on investment than INGERSOLL. However, Palomar Holdings is 2.08 times more volatile than INGERSOLL RAND GLOBAL HLDG. It trades about 0.05 of its potential returns per unit of risk. INGERSOLL RAND GLOBAL HLDG is currently generating about -0.14 per unit of risk. If you would invest 9,748 in Palomar Holdings on September 25, 2024 and sell it today you would earn a total of 509.00 from holding Palomar Holdings or generate 5.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 46.03% |
Values | Daily Returns |
Palomar Holdings vs. INGERSOLL RAND GLOBAL HLDG
Performance |
Timeline |
Palomar Holdings |
INGERSOLL RAND GLOBAL |
Palomar Holdings and INGERSOLL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Palomar Holdings and INGERSOLL
The main advantage of trading using opposite Palomar Holdings and INGERSOLL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palomar Holdings position performs unexpectedly, INGERSOLL 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 INGERSOLL will offset losses from the drop in INGERSOLL's long position.Palomar Holdings vs. Cincinnati Financial | Palomar Holdings vs. Dover | Palomar Holdings vs. Franklin Resources | Palomar Holdings vs. Air Products and |
INGERSOLL vs. Bill Com Holdings | INGERSOLL vs. Uber Technologies | INGERSOLL vs. Palomar Holdings | INGERSOLL vs. Rackspace Technology |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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