Correlation Between SBI Insurance and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both SBI Insurance and COFCO Joycome 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 SBI Insurance and COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Insurance Group and COFCO Joycome Foods, you can compare the effects of market volatilities on SBI Insurance and COFCO Joycome 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 SBI Insurance with a short position of COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and COFCO Joycome.
Diversification Opportunities for SBI Insurance and COFCO Joycome
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBI and COFCO is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods and SBI 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 SBI Insurance Group are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of SBI Insurance i.e., SBI Insurance and COFCO Joycome go up and down completely randomly.
Pair Corralation between SBI Insurance and COFCO Joycome
Assuming the 90 days trading horizon SBI Insurance Group is expected to generate 0.51 times more return on investment than COFCO Joycome. However, SBI Insurance Group is 1.97 times less risky than COFCO Joycome. It trades about 0.0 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about -0.02 per unit of risk. If you would invest 720.00 in SBI Insurance Group on October 16, 2024 and sell it today you would lose (75.00) from holding SBI Insurance Group or give up 10.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Insurance Group vs. COFCO Joycome Foods
Performance |
| Timeline |
| SBI Insurance Group |
| COFCO Joycome Foods |
SBI Insurance and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and COFCO Joycome
The main advantage of trading using opposite SBI Insurance and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| SBI Insurance vs. GLG LIFE TECH | SBI Insurance vs. NetSol Technologies | SBI Insurance vs. SLR Investment Corp | SBI Insurance vs. Sunny Optical Technology |
| COFCO Joycome vs. Cairo Communication SpA | COFCO Joycome vs. ecotel communication ag | COFCO Joycome vs. Harmony Gold Mining | COFCO Joycome vs. Zoom Video Communications |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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