Correlation Between SBI Insurance and ALLEGROEU
Can any of the company-specific risk be diversified away by investing in both SBI Insurance and ALLEGROEU 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 ALLEGROEU 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 ALLEGROEU ZY 01, you can compare the effects of market volatilities on SBI Insurance and ALLEGROEU 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 ALLEGROEU. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and ALLEGROEU.
Diversification Opportunities for SBI Insurance and ALLEGROEU
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBI and ALLEGROEU is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group and ALLEGROEU ZY 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLEGROEU ZY 01 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 ALLEGROEU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLEGROEU ZY 01 has no effect on the direction of SBI Insurance i.e., SBI Insurance and ALLEGROEU go up and down completely randomly.
Pair Corralation between SBI Insurance and ALLEGROEU
Assuming the 90 days trading horizon SBI Insurance Group is expected to generate 0.88 times more return on investment than ALLEGROEU. However, SBI Insurance Group is 1.13 times less risky than ALLEGROEU. It trades about 0.0 of its potential returns per unit of risk. ALLEGROEU ZY 01 is currently generating about -0.02 per unit of risk. If you would invest 635.00 in SBI Insurance Group on September 14, 2024 and sell it today you would lose (20.00) from holding SBI Insurance Group or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Insurance Group vs. ALLEGROEU ZY 01
Performance |
| Timeline |
| SBI Insurance Group |
| ALLEGROEU ZY 01 |
SBI Insurance and ALLEGROEU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and ALLEGROEU
The main advantage of trading using opposite SBI Insurance and ALLEGROEU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance position performs unexpectedly, ALLEGROEU 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 ALLEGROEU will offset losses from the drop in ALLEGROEU's long position.| SBI Insurance vs. Apple Inc | SBI Insurance vs. Apple Inc | SBI Insurance vs. Apple Inc | SBI Insurance vs. Apple Inc |
| ALLEGROEU vs. INSURANCE AUST GRP | ALLEGROEU vs. Zijin Mining Group | ALLEGROEU vs. Harmony Gold Mining | ALLEGROEU vs. SBI Insurance Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |