Correlation Between Apna Microfinance and IGI Life
Can any of the company-specific risk be diversified away by investing in both Apna Microfinance and IGI Life 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 Apna Microfinance and IGI Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apna Microfinance Bank and IGI Life Insurance, you can compare the effects of market volatilities on Apna Microfinance and IGI Life 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 Apna Microfinance with a short position of IGI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apna Microfinance and IGI Life.
Diversification Opportunities for Apna Microfinance and IGI Life
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apna and IGI is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Apna Microfinance Bank and IGI Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGI Life Insurance and Apna Microfinance 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 Apna Microfinance Bank are associated (or correlated) with IGI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGI Life Insurance has no effect on the direction of Apna Microfinance i.e., Apna Microfinance and IGI Life go up and down completely randomly.
Pair Corralation between Apna Microfinance and IGI Life
Assuming the 90 days trading horizon Apna Microfinance Bank is expected to generate 0.74 times more return on investment than IGI Life. However, Apna Microfinance Bank is 1.36 times less risky than IGI Life. It trades about 0.29 of its potential returns per unit of risk. IGI Life Insurance is currently generating about 0.0 per unit of risk. If you would invest 1,001 in Apna Microfinance Bank on November 7, 2024 and sell it today you would earn a total of 196.00 from holding Apna Microfinance Bank or generate 19.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Apna Microfinance Bank vs. IGI Life Insurance
Performance |
| Timeline |
| Apna Microfinance Bank |
| IGI Life Insurance |
Apna Microfinance and IGI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apna Microfinance and IGI Life
The main advantage of trading using opposite Apna Microfinance and IGI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apna Microfinance position performs unexpectedly, IGI Life 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 IGI Life will offset losses from the drop in IGI Life's long position.| Apna Microfinance vs. Habib Insurance | Apna Microfinance vs. Ghandhara Automobile | Apna Microfinance vs. Shadab Textile Mills | Apna Microfinance vs. Century Insurance |
| IGI Life vs. Agha Steel Industries | IGI Life vs. Honda Atlas Cars | IGI Life vs. Metropolitan Steel Corp | IGI Life vs. National Foods |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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