Correlation Between Crescent Star and Atlas Insurance
Can any of the company-specific risk be diversified away by investing in both Crescent Star and Atlas 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 Crescent Star and Atlas Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescent Star Insurance and Atlas Insurance, you can compare the effects of market volatilities on Crescent Star and Atlas 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 Crescent Star with a short position of Atlas Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Star and Atlas Insurance.
Diversification Opportunities for Crescent Star and Atlas Insurance
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crescent and Atlas is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Star Insurance and Atlas Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Insurance and Crescent Star 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 Crescent Star Insurance are associated (or correlated) with Atlas Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Insurance has no effect on the direction of Crescent Star i.e., Crescent Star and Atlas Insurance go up and down completely randomly.
Pair Corralation between Crescent Star and Atlas Insurance
Assuming the 90 days trading horizon Crescent Star is expected to generate 8.23 times less return on investment than Atlas Insurance. In addition to that, Crescent Star is 1.99 times more volatile than Atlas Insurance. It trades about 0.02 of its total potential returns per unit of risk. Atlas Insurance is currently generating about 0.29 per unit of volatility. If you would invest 3,964 in Atlas Insurance on August 30, 2024 and sell it today you would earn a total of 1,536 from holding Atlas Insurance or generate 38.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Crescent Star Insurance vs. Atlas Insurance
Performance |
| Timeline |
| Crescent Star Insurance |
| Atlas Insurance |
Crescent Star and Atlas Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent Star and Atlas Insurance
The main advantage of trading using opposite Crescent Star and Atlas Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Star position performs unexpectedly, Atlas 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 Atlas Insurance will offset losses from the drop in Atlas Insurance's long position.| Crescent Star vs. Air Link Communication | Crescent Star vs. Century Insurance | Crescent Star vs. Atlas Insurance | Crescent Star vs. Security Investment Bank |
| Atlas Insurance vs. National Foods | Atlas Insurance vs. Ghani Chemical Industries | Atlas Insurance vs. Aisha Steel Mills | Atlas Insurance vs. Lotte Chemical 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |