Correlation Between Evercore Partners and Reinsurance Group

Can any of the company-specific risk be diversified away by investing in both Evercore Partners and Reinsurance Group 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 Evercore Partners and Reinsurance Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Evercore Partners and Reinsurance Group of, you can compare the effects of market volatilities on Evercore Partners and Reinsurance Group 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 Evercore Partners with a short position of Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evercore Partners and Reinsurance Group.

Diversification Opportunities for Evercore Partners and Reinsurance Group

-0.38

Correlation Coefficient

Evercore Partners  Reinsurance Group

Very good diversification

The 3 months correlation between Evercore and Reinsurance is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Evercore Partners and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance Group and Evercore Partners 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 Evercore Partners are associated (or correlated) with Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of Evercore Partners i.e., Evercore Partners and Reinsurance Group go up and down completely randomly.

Pair Corralation between Evercore Partners and Reinsurance Group

Considering the 90-day investment horizon Evercore Partners is expected to generate 1.29 times more return on investment than Reinsurance Group. However, Evercore Partners is 1.29 times more volatile than Reinsurance Group of. It trades about 0.31 of its potential returns per unit of risk. Reinsurance Group of is currently generating about -0.1 per unit of risk. If you would invest  20,496  in Evercore Partners on May 6, 2025 and sell it today you would earn a total of  9,505  from holding Evercore Partners or generate 46.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Evercore Partners  vs.  Reinsurance Group of

Evercore Partners

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Evercore Partners are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Evercore Partners reported solid returns over the last few months and may actually be approaching a breakup point.

Reinsurance Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Reinsurance Group of has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Evercore Partners and Reinsurance Group

The main advantage of trading using opposite Evercore Partners and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evercore Partners position performs unexpectedly, Reinsurance Group 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.

The idea behind Evercore Partners and Reinsurance Group of 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.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..