Correlation Between LIFENET INSURANCE and Kering SA
Can any of the company-specific risk be diversified away by investing in both LIFENET INSURANCE and Kering SA 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 Kering SA 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 Kering SA, you can compare the effects of market volatilities on LIFENET INSURANCE and Kering SA 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 Kering SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFENET INSURANCE and Kering SA.
Diversification Opportunities for LIFENET INSURANCE and Kering SA
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LIFENET and Kering is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding LIFENET INSURANCE CO and Kering SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kering SA 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 Kering SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kering SA has no effect on the direction of LIFENET INSURANCE i.e., LIFENET INSURANCE and Kering SA go up and down completely randomly.
Pair Corralation between LIFENET INSURANCE and Kering SA
Assuming the 90 days horizon LIFENET INSURANCE CO is expected to generate 0.81 times more return on investment than Kering SA. However, LIFENET INSURANCE CO is 1.23 times less risky than Kering SA. It trades about 0.11 of its potential returns per unit of risk. Kering SA is currently generating about -0.06 per unit of risk. If you would invest 1,050 in LIFENET INSURANCE CO on September 3, 2024 and sell it today you would earn a total of 180.00 from holding LIFENET INSURANCE CO or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIFENET INSURANCE CO vs. Kering SA
Performance |
| Timeline |
| LIFENET INSURANCE |
| Kering SA |
LIFENET INSURANCE and Kering SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFENET INSURANCE and Kering SA
The main advantage of trading using opposite LIFENET INSURANCE and Kering SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFENET INSURANCE position performs unexpectedly, Kering SA 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 Kering SA will offset losses from the drop in Kering SA's long position.| LIFENET INSURANCE vs. TOWNSQUARE MEDIA INC | LIFENET INSURANCE vs. ATRESMEDIA | LIFENET INSURANCE vs. PT Global Mediacom | LIFENET INSURANCE vs. Flutter Entertainment PLC |
| Kering SA vs. Goosehead Insurance | Kering SA vs. CSSC Offshore Marine | Kering SA vs. LIFENET INSURANCE CO | Kering SA vs. BW OFFSHORE LTD |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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