Correlation Between LIFENET INSURANCE and Casio Computer
Can any of the company-specific risk be diversified away by investing in both LIFENET INSURANCE and Casio Computer 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 LIFENET INSURANCE and Casio Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIFENET INSURANCE CO and Casio Computer CoLtd, you can compare the effects of market volatilities on LIFENET INSURANCE and Casio Computer 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 LIFENET INSURANCE with a short position of Casio Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFENET INSURANCE and Casio Computer.
Diversification Opportunities for LIFENET INSURANCE and Casio Computer
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LIFENET and Casio is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding LIFENET INSURANCE CO and Casio Computer CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer CoLtd and LIFENET INSURANCE 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 LIFENET INSURANCE CO are associated (or correlated) with Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer CoLtd has no effect on the direction of LIFENET INSURANCE i.e., LIFENET INSURANCE and Casio Computer go up and down completely randomly.
Pair Corralation between LIFENET INSURANCE and Casio Computer
Assuming the 90 days horizon LIFENET INSURANCE CO is expected to under-perform the Casio Computer. In addition to that, LIFENET INSURANCE is 1.29 times more volatile than Casio Computer CoLtd. It trades about -0.1 of its total potential returns per unit of risk. Casio Computer CoLtd is currently generating about 0.19 per unit of volatility. If you would invest 711.00 in Casio Computer CoLtd on October 30, 2024 and sell it today you would earn a total of 75.00 from holding Casio Computer CoLtd or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIFENET INSURANCE CO vs. Casio Computer CoLtd
Performance |
| Timeline |
| LIFENET INSURANCE |
| Casio Computer CoLtd |
LIFENET INSURANCE and Casio Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFENET INSURANCE and Casio Computer
The main advantage of trading using opposite LIFENET INSURANCE and Casio Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFENET INSURANCE position performs unexpectedly, Casio Computer 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 Casio Computer will offset losses from the drop in Casio Computer's long position.| LIFENET INSURANCE vs. ANGLO ASIAN MINING | LIFENET INSURANCE vs. STGEORGE MINING LTD | LIFENET INSURANCE vs. MAGNUM MINING EXP | LIFENET INSURANCE vs. SCANSOURCE |
| Casio Computer vs. Apple Inc | Casio Computer vs. Apple Inc | Casio Computer vs. Samsung Electronics Co | Casio Computer vs. Samsung Electronics Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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