Correlation Between Baldwin Lyons and EMC Insurance
Can any of the company-specific risk be diversified away by investing in both Baldwin Lyons and EMC Insurance 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 Baldwin Lyons and EMC Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baldwin Lyons and EMC Insurance Group, you can compare the effects of market volatilities on Baldwin Lyons and EMC Insurance 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 Baldwin Lyons with a short position of EMC Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baldwin Lyons and EMC Insurance.
Diversification Opportunities for Baldwin Lyons and EMC Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baldwin and EMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baldwin Lyons and EMC Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMC Insurance Group and Baldwin Lyons 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 Baldwin Lyons are associated (or correlated) with EMC Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMC Insurance Group has no effect on the direction of Baldwin Lyons i.e., Baldwin Lyons and EMC Insurance go up and down completely randomly.
Pair Corralation between Baldwin Lyons and EMC Insurance
If you would invest (100.00) in EMC Insurance Group on January 20, 2024 and sell it today you would earn a total of 100.00 from holding EMC Insurance Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baldwin Lyons vs. EMC Insurance Group
Performance |
| Timeline |
| Baldwin Lyons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EMC Insurance Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baldwin Lyons and EMC Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baldwin Lyons and EMC Insurance
The main advantage of trading using opposite Baldwin Lyons and EMC Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baldwin Lyons position performs unexpectedly, EMC Insurance 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 EMC Insurance will offset losses from the drop in EMC Insurance's long position.| Baldwin Lyons vs. Kite Realty Group | Baldwin Lyons vs. Upper Street Marketing | Baldwin Lyons vs. US GoldMining Common | Baldwin Lyons vs. Uranium Energy Corp |
| EMC Insurance vs. Agiliti | EMC Insurance vs. Kaltura | EMC Insurance vs. Definitive Healthcare Corp | EMC Insurance vs. CDW Corp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |