Correlation Between EMC Insurance and Loews Corp
Can any of the company-specific risk be diversified away by investing in both EMC Insurance and Loews Corp 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 EMC Insurance and Loews Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMC Insurance Group and Loews Corp, you can compare the effects of market volatilities on EMC Insurance and Loews Corp 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 EMC Insurance with a short position of Loews Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMC Insurance and Loews Corp.
Diversification Opportunities for EMC Insurance and Loews Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EMC and Loews is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EMC Insurance Group and Loews Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loews Corp and EMC Insurance 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 EMC Insurance Group are associated (or correlated) with Loews Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loews Corp has no effect on the direction of EMC Insurance i.e., EMC Insurance and Loews Corp go up and down completely randomly.
Pair Corralation between EMC Insurance and Loews Corp
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 | 0.0% |
| Values | Daily Returns |
EMC Insurance Group vs. Loews Corp
Performance |
| Timeline |
| EMC Insurance Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Loews Corp |
EMC Insurance and Loews Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMC Insurance and Loews Corp
The main advantage of trading using opposite EMC Insurance and Loews Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMC Insurance position performs unexpectedly, Loews Corp 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 Loews Corp will offset losses from the drop in Loews Corp's long position.| EMC Insurance vs. Agiliti | EMC Insurance vs. Kaltura | EMC Insurance vs. Definitive Healthcare Corp | EMC Insurance vs. CDW Corp |
| Loews Corp vs. Global Indemnity PLC | Loews Corp vs. Selective Insurance Group | Loews Corp vs. Kemper | Loews Corp vs. Stewart Information Services |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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