Correlation Between Arch Capital and Greene King
Can any of the company-specific risk be diversified away by investing in both Arch Capital and Greene King 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 Arch Capital and Greene King into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arch Capital Group and Greene King Plc, you can compare the effects of market volatilities on Arch Capital and Greene King 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 Arch Capital with a short position of Greene King. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arch Capital and Greene King.
Diversification Opportunities for Arch Capital and Greene King
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arch and Greene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arch Capital Group and Greene King Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greene King Plc and Arch Capital 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 Arch Capital Group are associated (or correlated) with Greene King. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greene King Plc has no effect on the direction of Arch Capital i.e., Arch Capital and Greene King go up and down completely randomly.
Pair Corralation between Arch Capital and Greene King
If you would invest 4,497 in Arch Capital Group on February 16, 2024 and sell it today you would earn a total of 5,290 from holding Arch Capital Group or generate 117.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Arch Capital Group vs. Greene King Plc
Performance |
Timeline |
Arch Capital Group |
Greene King Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Arch Capital and Greene King Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arch Capital and Greene King
The main advantage of trading using opposite Arch Capital and Greene King positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arch Capital position performs unexpectedly, Greene King 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 Greene King will offset losses from the drop in Greene King's long position.Arch Capital vs. International General Insurance | Arch Capital vs. Assicurazioni Generali SpA | Arch Capital vs. ageas SANV | Arch Capital vs. AXA SA |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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