Correlation Between INTNED and Employers Holdings

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Can any of the company-specific risk be diversified away by investing in both INTNED and Employers Holdings 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 INTNED and Employers Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTNED 61032 28 MAR 26 and Employers Holdings, you can compare the effects of market volatilities on INTNED and Employers Holdings 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 INTNED with a short position of Employers Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTNED and Employers Holdings.

Diversification Opportunities for INTNED and Employers Holdings

-0.18
  Correlation Coefficient

Good diversification

The 3 months correlation between INTNED and Employers is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding INTNED 61032 28 MAR 26 and Employers Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Employers Holdings and INTNED 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 INTNED 61032 28 MAR 26 are associated (or correlated) with Employers Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Employers Holdings has no effect on the direction of INTNED i.e., INTNED and Employers Holdings go up and down completely randomly.

Pair Corralation between INTNED and Employers Holdings

Assuming the 90 days trading horizon INTNED 61032 28 MAR 26 is expected to under-perform the Employers Holdings. But the bond apears to be less risky and, when comparing its historical volatility, INTNED 61032 28 MAR 26 is 2.44 times less risky than Employers Holdings. The bond trades about -0.01 of its potential returns per unit of risk. The Employers Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,091  in Employers Holdings on September 20, 2024 and sell it today you would earn a total of  1,057  from holding Employers Holdings or generate 25.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy46.26%
ValuesDaily Returns

INTNED 61032 28 MAR 26  vs.  Employers Holdings

 Performance 
       Timeline  
INTNED 61032 28 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 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 INTNED 61032 28 MAR 26 investors.
Employers Holdings 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Employers Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Employers Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

INTNED and Employers Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with INTNED and Employers Holdings

The main advantage of trading using opposite INTNED and Employers Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTNED position performs unexpectedly, Employers Holdings 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 Employers Holdings will offset losses from the drop in Employers Holdings' long position.
The idea behind INTNED 61032 28 MAR 26 and Employers Holdings 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.
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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