Correlation Between CREDITACCESS GRAMEEN and Life Insurance
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and Life Insurance, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN and Life 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 CREDITACCESS GRAMEEN with a short position of Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and Life Insurance.
Diversification Opportunities for CREDITACCESS GRAMEEN and Life Insurance
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between CREDITACCESS and Life is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance and CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN LIMITED are associated (or correlated) with Life Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Insurance has no effect on the direction of CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and Life Insurance go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and Life Insurance
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN is expected to generate 1.49 times less return on investment than Life Insurance. In addition to that, CREDITACCESS GRAMEEN is 1.22 times more volatile than Life Insurance. It trades about 0.02 of its total potential returns per unit of risk. Life Insurance is currently generating about 0.04 per unit of volatility. If you would invest 61,136 in Life Insurance on November 1, 2024 and sell it today you would earn a total of 21,684 from holding Life Insurance or generate 35.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. Life Insurance
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| Life Insurance |
CREDITACCESS GRAMEEN and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and Life Insurance
The main advantage of trading using opposite CREDITACCESS GRAMEEN and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN position performs unexpectedly, Life 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 Life Insurance will offset losses from the drop in Life Insurance's long position.| CREDITACCESS GRAMEEN vs. Rashtriya Chemicals and | CREDITACCESS GRAMEEN vs. Sukhjit Starch Chemicals | CREDITACCESS GRAMEEN vs. Electronics Mart India | CREDITACCESS GRAMEEN vs. Mahamaya Steel Industries |
| Life Insurance vs. Vardhman Special Steels | Life Insurance vs. NMDC Steel Limited | Life Insurance vs. SAL Steel Limited | Life Insurance vs. Kotak Mahindra 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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