Correlation Between WUXI BIOLOGICS and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both WUXI BIOLOGICS and Selective Insurance 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 WUXI BIOLOGICS and Selective Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WUXI BIOLOGICS 00000083 and Selective Insurance Group, you can compare the effects of market volatilities on WUXI BIOLOGICS and Selective Insurance 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 WUXI BIOLOGICS with a short position of Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of WUXI BIOLOGICS and Selective Insurance.
Diversification Opportunities for WUXI BIOLOGICS and Selective Insurance
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WUXI and Selective is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding WUXI BIOLOGICS 00000083 and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance and WUXI BIOLOGICS 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 WUXI BIOLOGICS 00000083 are associated (or correlated) with Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of WUXI BIOLOGICS i.e., WUXI BIOLOGICS and Selective Insurance go up and down completely randomly.
Pair Corralation between WUXI BIOLOGICS and Selective Insurance
Assuming the 90 days trading horizon WUXI BIOLOGICS 00000083 is expected to generate 2.24 times more return on investment than Selective Insurance. However, WUXI BIOLOGICS is 2.24 times more volatile than Selective Insurance Group. It trades about 0.07 of its potential returns per unit of risk. Selective Insurance Group is currently generating about 0.04 per unit of risk. If you would invest 141.00 in WUXI BIOLOGICS 00000083 on September 3, 2024 and sell it today you would earn a total of 43.00 from holding WUXI BIOLOGICS 00000083 or generate 30.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WUXI BIOLOGICS 00000083 vs. Selective Insurance Group
Performance |
| Timeline |
| WUXI BIOLOGICS 00000083 |
| Selective Insurance |
WUXI BIOLOGICS and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WUXI BIOLOGICS and Selective Insurance
The main advantage of trading using opposite WUXI BIOLOGICS and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WUXI BIOLOGICS position performs unexpectedly, Selective Insurance 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 Selective Insurance will offset losses from the drop in Selective Insurance's long position.| WUXI BIOLOGICS vs. GEAR4MUSIC LS 10 | WUXI BIOLOGICS vs. TEXAS ROADHOUSE | WUXI BIOLOGICS vs. CarsalesCom | WUXI BIOLOGICS vs. Transport International Holdings |
| Selective Insurance vs. The Progressive | Selective Insurance vs. The Allstate | Selective Insurance vs. PICC Property and | Selective Insurance vs. Fairfax Financial Holdings |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |