Correlation Between AIICO INSURANCE and ASO SAVINGS

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Can any of the company-specific risk be diversified away by investing in both AIICO INSURANCE and ASO SAVINGS 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 AIICO INSURANCE and ASO SAVINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIICO INSURANCE PLC and ASO SAVINGS AND, you can compare the effects of market volatilities on AIICO INSURANCE and ASO SAVINGS 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 AIICO INSURANCE with a short position of ASO SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIICO INSURANCE and ASO SAVINGS.

Diversification Opportunities for AIICO INSURANCE and ASO SAVINGS

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AIICO and ASO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AIICO INSURANCE PLC and ASO SAVINGS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASO SAVINGS AND and AIICO 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 AIICO INSURANCE PLC are associated (or correlated) with ASO SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASO SAVINGS AND has no effect on the direction of AIICO INSURANCE i.e., AIICO INSURANCE and ASO SAVINGS go up and down completely randomly.

Pair Corralation between AIICO INSURANCE and ASO SAVINGS

If you would invest  114.00  in AIICO INSURANCE PLC on September 12, 2024 and sell it today you would earn a total of  8.00  from holding AIICO INSURANCE PLC or generate 7.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

AIICO INSURANCE PLC  vs.  ASO SAVINGS AND

 Performance 
       Timeline  
AIICO INSURANCE PLC 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in AIICO INSURANCE PLC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, AIICO INSURANCE may actually be approaching a critical reversion point that can send shares even higher in January 2025.
ASO SAVINGS AND 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ASO SAVINGS AND has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, ASO SAVINGS is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

AIICO INSURANCE and ASO SAVINGS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AIICO INSURANCE and ASO SAVINGS

The main advantage of trading using opposite AIICO INSURANCE and ASO SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIICO INSURANCE position performs unexpectedly, ASO SAVINGS 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 ASO SAVINGS will offset losses from the drop in ASO SAVINGS's long position.
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The idea behind AIICO INSURANCE PLC and ASO SAVINGS AND pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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