Correlation Between Verisk Analytics and Excel Corp
Can any of the company-specific risk be diversified away by investing in both Verisk Analytics and Excel 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 Verisk Analytics and Excel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verisk Analytics and Excel Corp, you can compare the effects of market volatilities on Verisk Analytics and Excel 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 Verisk Analytics with a short position of Excel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verisk Analytics and Excel Corp.
Diversification Opportunities for Verisk Analytics and Excel Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Verisk and Excel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Verisk Analytics and Excel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excel Corp and Verisk Analytics 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 Verisk Analytics are associated (or correlated) with Excel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excel Corp has no effect on the direction of Verisk Analytics i.e., Verisk Analytics and Excel Corp go up and down completely randomly.
Pair Corralation between Verisk Analytics and Excel Corp
Given the investment horizon of 90 days Verisk Analytics is expected to generate 0.04 times more return on investment than Excel Corp. However, Verisk Analytics is 26.49 times less risky than Excel Corp. It trades about -0.31 of its potential returns per unit of risk. Excel Corp is currently generating about -0.22 per unit of risk. If you would invest 23,640 in Verisk Analytics on January 20, 2024 and sell it today you would lose (1,307) from holding Verisk Analytics or give up 5.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Verisk Analytics vs. Excel Corp
Performance |
Timeline |
Verisk Analytics |
Excel Corp |
Verisk Analytics and Excel Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Verisk Analytics and Excel Corp
The main advantage of trading using opposite Verisk Analytics and Excel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verisk Analytics position performs unexpectedly, Excel 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 Excel Corp will offset losses from the drop in Excel Corp's long position.Verisk Analytics vs. Genpact Limited | Verisk Analytics vs. ExlService Holdings | Verisk Analytics vs. Science Applications International | Verisk Analytics vs. WNS Holdings |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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