Correlation Between PEPTONIC MEDICAL and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both PEPTONIC MEDICAL 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 PEPTONIC MEDICAL and Selective Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEPTONIC MEDICAL and Selective Insurance Group, you can compare the effects of market volatilities on PEPTONIC MEDICAL 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 PEPTONIC MEDICAL with a short position of Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEPTONIC MEDICAL and Selective Insurance.
Diversification Opportunities for PEPTONIC MEDICAL and Selective Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PEPTONIC and Selective is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PEPTONIC MEDICAL and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance and PEPTONIC MEDICAL 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 PEPTONIC MEDICAL 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 PEPTONIC MEDICAL i.e., PEPTONIC MEDICAL and Selective Insurance go up and down completely randomly.
Pair Corralation between PEPTONIC MEDICAL and Selective Insurance
If you would invest 0.02 in PEPTONIC MEDICAL on October 11, 2024 and sell it today you would earn a total of 0.00 from holding PEPTONIC MEDICAL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PEPTONIC MEDICAL vs. Selective Insurance Group
Performance |
| Timeline |
| PEPTONIC MEDICAL |
| Selective Insurance |
PEPTONIC MEDICAL and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PEPTONIC MEDICAL and Selective Insurance
The main advantage of trading using opposite PEPTONIC MEDICAL and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEPTONIC MEDICAL 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.| PEPTONIC MEDICAL vs. CDN IMPERIAL BANK | PEPTONIC MEDICAL vs. Shenandoah Telecommunications | PEPTONIC MEDICAL vs. Sun Life Financial | PEPTONIC MEDICAL vs. China Resources Beer |
| Selective Insurance vs. Advanced Medical Solutions | Selective Insurance vs. AWILCO DRILLING PLC | Selective Insurance vs. NorAm Drilling AS | Selective Insurance vs. Tencent Music Entertainment |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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