Correlation Between Reliance Global and Crawford

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

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

Diversification Opportunities for Reliance Global and Crawford

-0.07

Correlation Coefficient

Reliance Global  Crawford

Good diversification

The 3 months correlation between Reliance and Crawford is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Reliance Global Group and Crawford Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford and Reliance Global 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 Reliance Global Group are associated (or correlated) with Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford has no effect on the direction of Reliance Global i.e., Reliance Global and Crawford go up and down completely randomly.

Pair Corralation between Reliance Global and Crawford

Given the investment horizon of 90 days Reliance Global Group is expected to generate 6.39 times more return on investment than Crawford. However, Reliance Global is 6.39 times more volatile than Crawford Company. It trades about 0.04 of its potential returns per unit of risk. Crawford Company is currently generating about -0.09 per unit of risk. If you would invest  116.00  in Reliance Global Group on May 6, 2025 and sell it today you would lose (9.00) from holding Reliance Global Group or give up 7.76% of portfolio value over 90 days.

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

Reliance Global Group  vs.  Crawford Company

Reliance Global Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Reliance Global Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Reliance Global demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Crawford

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crawford Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic 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 Reliance Global and Crawford

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

The idea behind Reliance Global Group and Crawford Company 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.