Correlation Between Atlas Insurance and Supernet Technologie
Can any of the company-specific risk be diversified away by investing in both Atlas Insurance and Supernet Technologie 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 Atlas Insurance and Supernet Technologie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Insurance and Supernet Technologie, you can compare the effects of market volatilities on Atlas Insurance and Supernet Technologie 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 Atlas Insurance with a short position of Supernet Technologie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Insurance and Supernet Technologie.
Diversification Opportunities for Atlas Insurance and Supernet Technologie
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atlas and Supernet is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Insurance and Supernet Technologie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supernet Technologie and Atlas 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 Atlas Insurance are associated (or correlated) with Supernet Technologie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supernet Technologie has no effect on the direction of Atlas Insurance i.e., Atlas Insurance and Supernet Technologie go up and down completely randomly.
Pair Corralation between Atlas Insurance and Supernet Technologie
Assuming the 90 days trading horizon Atlas Insurance is expected to generate 1.1 times less return on investment than Supernet Technologie. But when comparing it to its historical volatility, Atlas Insurance is 2.72 times less risky than Supernet Technologie. It trades about 0.17 of its potential returns per unit of risk. Supernet Technologie is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 86,551 in Supernet Technologie on November 1, 2024 and sell it today you would earn a total of 2,237 from holding Supernet Technologie or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 6.1% |
| Values | Daily Returns |
Atlas Insurance vs. Supernet Technologie
Performance |
| Timeline |
| Atlas Insurance |
| Supernet Technologie |
Atlas Insurance and Supernet Technologie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Insurance and Supernet Technologie
The main advantage of trading using opposite Atlas Insurance and Supernet Technologie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Insurance position performs unexpectedly, Supernet Technologie 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 Supernet Technologie will offset losses from the drop in Supernet Technologie's long position.| Atlas Insurance vs. Askari General Insurance | Atlas Insurance vs. Habib Insurance | Atlas Insurance vs. MCB Investment Manag | Atlas Insurance vs. Shaheen Insurance |
| Supernet Technologie vs. Atlas Insurance | Supernet Technologie vs. Century Insurance | Supernet Technologie vs. Premier Insurance | Supernet Technologie vs. Pakistan Aluminium Beverage |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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