Correlation Between SBI Insurance and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both SBI Insurance and GAMESTOP 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 GAMESTOP 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 GAMESTOP, you can compare the effects of market volatilities on SBI Insurance and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and GAMESTOP.
Diversification Opportunities for SBI Insurance and GAMESTOP
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SBI and GAMESTOP is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of SBI Insurance i.e., SBI Insurance and GAMESTOP go up and down completely randomly.
Pair Corralation between SBI Insurance and GAMESTOP
Assuming the 90 days trading horizon SBI Insurance Group is expected to generate 1.0 times more return on investment than GAMESTOP. However, SBI Insurance is 1.0 times more volatile than GAMESTOP. It trades about 0.14 of its potential returns per unit of risk. GAMESTOP is currently generating about -0.54 per unit of risk. If you would invest 680.00 in SBI Insurance Group on December 11, 2024 and sell it today you would earn a total of 40.00 from holding SBI Insurance Group or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Insurance Group vs. GAMESTOP
Performance |
| Timeline |
| SBI Insurance Group |
| GAMESTOP |
SBI Insurance and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and GAMESTOP
The main advantage of trading using opposite SBI Insurance and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| SBI Insurance vs. Broadridge Financial Solutions | SBI Insurance vs. JSC Halyk bank | SBI Insurance vs. REVO INSURANCE SPA | SBI Insurance vs. Discover Financial Services |
| GAMESTOP vs. Costco Wholesale Corp | GAMESTOP vs. COSTCO WHOLESALE CDR | GAMESTOP vs. JIAHUA STORES | GAMESTOP vs. BURLINGTON STORES |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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