Correlation Between MOVIE GAMES and Safety Insurance
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES and Safety 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 MOVIE GAMES and Safety Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and Safety Insurance Group, you can compare the effects of market volatilities on MOVIE GAMES and Safety 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 MOVIE GAMES with a short position of Safety Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Safety Insurance.
Diversification Opportunities for MOVIE GAMES and Safety Insurance
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MOVIE and Safety is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and Safety Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safety Insurance and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with Safety Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safety Insurance has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and Safety Insurance go up and down completely randomly.
Pair Corralation between MOVIE GAMES and Safety Insurance
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 5.39 times more return on investment than Safety Insurance. However, MOVIE GAMES is 5.39 times more volatile than Safety Insurance Group. It trades about 0.27 of its potential returns per unit of risk. Safety Insurance Group is currently generating about -0.18 per unit of risk. If you would invest 307.00 in MOVIE GAMES SA on October 14, 2024 and sell it today you would earn a total of 94.00 from holding MOVIE GAMES SA or generate 30.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. Safety Insurance Group
Performance |
| Timeline |
| MOVIE GAMES SA |
| Safety Insurance |
MOVIE GAMES and Safety Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and Safety Insurance
The main advantage of trading using opposite MOVIE GAMES and Safety Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES position performs unexpectedly, Safety 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 Safety Insurance will offset losses from the drop in Safety Insurance's long position.| MOVIE GAMES vs. Singapore Telecommunications Limited | MOVIE GAMES vs. Shenandoah Telecommunications | MOVIE GAMES vs. Cleanaway Waste Management | MOVIE GAMES vs. ecotel communication ag |
| Safety Insurance vs. MOVIE GAMES SA | Safety Insurance vs. Boyd Gaming | Safety Insurance vs. CONTAGIOUS GAMING INC | Safety Insurance vs. Media and Games |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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