Correlation Between Air Link and Century Insurance
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By analyzing existing cross correlation between Air Link Communication and Century Insurance, you can compare the effects of market volatilities on Air Link and Century 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 Air Link with a short position of Century Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Link and Century Insurance.
Diversification Opportunities for Air Link and Century Insurance
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and Century is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Air Link Communication and Century Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Insurance and Air Link 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 Air Link Communication are associated (or correlated) with Century Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Insurance has no effect on the direction of Air Link i.e., Air Link and Century Insurance go up and down completely randomly.
Pair Corralation between Air Link and Century Insurance
Assuming the 90 days trading horizon Air Link Communication is expected to generate 0.87 times more return on investment than Century Insurance. However, Air Link Communication is 1.15 times less risky than Century Insurance. It trades about 0.16 of its potential returns per unit of risk. Century Insurance is currently generating about 0.14 per unit of risk. If you would invest 5,359 in Air Link Communication on August 28, 2024 and sell it today you would earn a total of 7,763 from holding Air Link Communication or generate 144.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.5% |
| Values | Daily Returns |
Air Link Communication vs. Century Insurance
Performance |
| Timeline |
| Air Link Communication |
| Century Insurance |
Air Link and Century Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Link and Century Insurance
The main advantage of trading using opposite Air Link and Century Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Link position performs unexpectedly, Century 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 Century Insurance will offset losses from the drop in Century Insurance's long position.| Air Link vs. Habib Insurance | Air Link vs. Century Insurance | Air Link vs. Reliance Weaving Mills | Air Link vs. Media Times |
| Century Insurance vs. Habib Bank | Century Insurance vs. National Bank of | Century Insurance vs. United Bank | Century Insurance vs. MCB Bank |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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