Correlation Between MYFAIR GOLD and LIFENET INSURANCE
Can any of the company-specific risk be diversified away by investing in both MYFAIR GOLD 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 MYFAIR GOLD and LIFENET INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYFAIR GOLD P and LIFENET INSURANCE CO, you can compare the effects of market volatilities on MYFAIR GOLD 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 MYFAIR GOLD with a short position of LIFENET INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYFAIR GOLD and LIFENET INSURANCE.
Diversification Opportunities for MYFAIR GOLD and LIFENET INSURANCE
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between MYFAIR and LIFENET is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding MYFAIR GOLD P and LIFENET INSURANCE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFENET INSURANCE and MYFAIR GOLD 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 MYFAIR GOLD P 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 MYFAIR GOLD i.e., MYFAIR GOLD and LIFENET INSURANCE go up and down completely randomly.
Pair Corralation between MYFAIR GOLD and LIFENET INSURANCE
Assuming the 90 days horizon MYFAIR GOLD is expected to generate 10.63 times less return on investment than LIFENET INSURANCE. In addition to that, MYFAIR GOLD is 1.23 times more volatile than LIFENET INSURANCE CO. It trades about 0.01 of its total potential returns per unit of risk. LIFENET INSURANCE CO is currently generating about 0.1 per unit of volatility. If you would invest 780.00 in LIFENET INSURANCE CO on September 1, 2024 and sell it today you would earn a total of 450.00 from holding LIFENET INSURANCE CO or generate 57.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYFAIR GOLD P vs. LIFENET INSURANCE CO
Performance |
| Timeline |
| MYFAIR GOLD P |
| LIFENET INSURANCE |
MYFAIR GOLD and LIFENET INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYFAIR GOLD and LIFENET INSURANCE
The main advantage of trading using opposite MYFAIR GOLD and LIFENET INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYFAIR GOLD 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.| MYFAIR GOLD vs. PLAYTIKA HOLDING DL 01 | MYFAIR GOLD vs. CNVISION MEDIA | MYFAIR GOLD vs. Dave Busters Entertainment | MYFAIR GOLD vs. STORE ELECTRONIC |
| LIFENET INSURANCE vs. Fukuyama Transporting Co | LIFENET INSURANCE vs. Sporttotal AG | LIFENET INSURANCE vs. COLUMBIA SPORTSWEAR | LIFENET INSURANCE vs. ADRIATIC METALS LS 013355 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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