Correlation Between Clearside Biomedical and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both Clearside Biomedical and Selective 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 Clearside Biomedical and Selective Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearside Biomedical and Selective Insurance Group, you can compare the effects of market volatilities on Clearside Biomedical and Selective 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 Clearside Biomedical with a short position of Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearside Biomedical and Selective Insurance.
Diversification Opportunities for Clearside Biomedical and Selective Insurance
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clearside and Selective is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Clearside Biomedical and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance and Clearside Biomedical 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 Clearside Biomedical are associated (or correlated) with Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of Clearside Biomedical i.e., Clearside Biomedical and Selective Insurance go up and down completely randomly.
Pair Corralation between Clearside Biomedical and Selective Insurance
Assuming the 90 days trading horizon Clearside Biomedical is expected to under-perform the Selective Insurance. In addition to that, Clearside Biomedical is 1.05 times more volatile than Selective Insurance Group. It trades about -0.05 of its total potential returns per unit of risk. Selective Insurance Group is currently generating about 0.17 per unit of volatility. If you would invest 8,416 in Selective Insurance Group on August 29, 2024 and sell it today you would earn a total of 684.00 from holding Selective Insurance Group or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Clearside Biomedical vs. Selective Insurance Group
Performance |
| Timeline |
| Clearside Biomedical |
| Selective Insurance |
Clearside Biomedical and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearside Biomedical and Selective Insurance
The main advantage of trading using opposite Clearside Biomedical and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearside Biomedical position performs unexpectedly, Selective 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 Selective Insurance will offset losses from the drop in Selective Insurance's long position.| Clearside Biomedical vs. Platinum Investment Management | Clearside Biomedical vs. Geratherm Medical AG | Clearside Biomedical vs. Diamyd Medical AB | Clearside Biomedical vs. Waste Management |
| Selective Insurance vs. PICC Property and | Selective Insurance vs. QBE Insurance Group | Selective Insurance vs. Superior Plus Corp | Selective Insurance vs. SIVERS SEMICONDUCTORS AB |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |