Correlation Between Atlas Insurance and TPL Insurance
Can any of the company-specific risk be diversified away by investing in both Atlas Insurance and TPL 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 Atlas Insurance and TPL Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Insurance and TPL Insurance, you can compare the effects of market volatilities on Atlas Insurance and TPL 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 Atlas Insurance with a short position of TPL Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Insurance and TPL Insurance.
Diversification Opportunities for Atlas Insurance and TPL Insurance
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atlas and TPL is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Insurance and TPL Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPL Insurance 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 TPL Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPL Insurance has no effect on the direction of Atlas Insurance i.e., Atlas Insurance and TPL Insurance go up and down completely randomly.
Pair Corralation between Atlas Insurance and TPL Insurance
Assuming the 90 days trading horizon Atlas Insurance is expected to generate 0.49 times more return on investment than TPL Insurance. However, Atlas Insurance is 2.05 times less risky than TPL Insurance. It trades about 0.24 of its potential returns per unit of risk. TPL Insurance is currently generating about -0.09 per unit of risk. If you would invest 3,797 in Atlas Insurance on August 28, 2024 and sell it today you would earn a total of 1,837 from holding Atlas Insurance or generate 48.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Insurance vs. TPL Insurance
Performance |
| Timeline |
| Atlas Insurance |
| TPL Insurance |
Atlas Insurance and TPL Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Insurance and TPL Insurance
The main advantage of trading using opposite Atlas Insurance and TPL Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Insurance position performs unexpectedly, TPL 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 TPL Insurance will offset losses from the drop in TPL Insurance's long position.| Atlas Insurance vs. Habib Bank | Atlas Insurance vs. National Bank of | Atlas Insurance vs. United Bank | Atlas Insurance vs. MCB Bank |
| TPL Insurance vs. Unilever Pakistan Foods | TPL Insurance vs. WorldCall Telecom | TPL Insurance vs. Air Link Communication | TPL Insurance vs. ORIX Leasing Pakistan |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |