Correlation Between PACIFIC ONLINE and SBI Insurance
Can any of the company-specific risk be diversified away by investing in both PACIFIC ONLINE and SBI 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 PACIFIC ONLINE and SBI Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PACIFIC ONLINE and SBI Insurance Group, you can compare the effects of market volatilities on PACIFIC ONLINE and SBI 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 PACIFIC ONLINE with a short position of SBI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC ONLINE and SBI Insurance.
Diversification Opportunities for PACIFIC ONLINE and SBI Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PACIFIC and SBI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC ONLINE and SBI Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Insurance Group and PACIFIC ONLINE 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 PACIFIC ONLINE are associated (or correlated) with SBI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Insurance Group has no effect on the direction of PACIFIC ONLINE i.e., PACIFIC ONLINE and SBI Insurance go up and down completely randomly.
Pair Corralation between PACIFIC ONLINE and SBI Insurance
If you would invest 645.00 in SBI Insurance Group on November 7, 2024 and sell it today you would earn a total of 30.00 from holding SBI Insurance Group or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PACIFIC ONLINE vs. SBI Insurance Group
Performance |
| Timeline |
| PACIFIC ONLINE |
| SBI Insurance Group |
PACIFIC ONLINE and SBI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC ONLINE and SBI Insurance
The main advantage of trading using opposite PACIFIC ONLINE and SBI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC ONLINE position performs unexpectedly, SBI 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 SBI Insurance will offset losses from the drop in SBI Insurance's long position.| PACIFIC ONLINE vs. GMO Internet | PACIFIC ONLINE vs. Casio Computer CoLtd | PACIFIC ONLINE vs. Hua Hong Semiconductor | PACIFIC ONLINE vs. Nordic Semiconductor ASA |
| SBI Insurance vs. Summit Hotel Properties | SBI Insurance vs. Sunstone Hotel Investors | SBI Insurance vs. Choice Hotels International | SBI 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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