Correlation Between ADRIATIC METALS and LIFENET INSURANCE
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS and LIFENET 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 ADRIATIC METALS and LIFENET INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and LIFENET INSURANCE CO, you can compare the effects of market volatilities on ADRIATIC METALS and LIFENET 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 ADRIATIC METALS with a short position of LIFENET INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and LIFENET INSURANCE.
Diversification Opportunities for ADRIATIC METALS and LIFENET INSURANCE
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ADRIATIC and LIFENET is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and LIFENET INSURANCE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFENET INSURANCE and ADRIATIC METALS 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 ADRIATIC METALS LS 013355 are associated (or correlated) with LIFENET INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFENET INSURANCE has no effect on the direction of ADRIATIC METALS i.e., ADRIATIC METALS and LIFENET INSURANCE go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and LIFENET INSURANCE
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to generate 1.39 times more return on investment than LIFENET INSURANCE. However, ADRIATIC METALS is 1.39 times more volatile than LIFENET INSURANCE CO. It trades about 0.03 of its potential returns per unit of risk. LIFENET INSURANCE CO is currently generating about 0.03 per unit of risk. If you would invest 220.00 in ADRIATIC METALS LS 013355 on November 29, 2024 and sell it today you would earn a total of 36.00 from holding ADRIATIC METALS LS 013355 or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. LIFENET INSURANCE CO
Performance |
| Timeline |
| ADRIATIC METALS LS |
| LIFENET INSURANCE |
ADRIATIC METALS and LIFENET INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and LIFENET INSURANCE
The main advantage of trading using opposite ADRIATIC METALS and LIFENET INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS position performs unexpectedly, LIFENET 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 LIFENET INSURANCE will offset losses from the drop in LIFENET INSURANCE's long position.| ADRIATIC METALS vs. LG Display Co | ADRIATIC METALS vs. Playa Hotels Resorts | ADRIATIC METALS vs. Live Nation Entertainment | ADRIATIC METALS vs. LINMON MEDIA LTD |
| LIFENET INSURANCE vs. NH HOTEL GROUP | LIFENET INSURANCE vs. Guangdong Investment Limited | LIFENET INSURANCE vs. MHP Hotel AG | LIFENET INSURANCE vs. PPHE HOTEL GROUP |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |