Correlation Between EMBASSY OFFICE and General Insurance
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By analyzing existing cross correlation between EMBASSY OFFICE PARKS and General Insurance, you can compare the effects of market volatilities on EMBASSY OFFICE and General 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 EMBASSY OFFICE with a short position of General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMBASSY OFFICE and General Insurance.
Diversification Opportunities for EMBASSY OFFICE and General Insurance
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EMBASSY and General is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding EMBASSY OFFICE PARKS and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance and EMBASSY OFFICE 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 EMBASSY OFFICE PARKS are associated (or correlated) with General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of EMBASSY OFFICE i.e., EMBASSY OFFICE and General Insurance go up and down completely randomly.
Pair Corralation between EMBASSY OFFICE and General Insurance
Assuming the 90 days trading horizon EMBASSY OFFICE PARKS is expected to under-perform the General Insurance. But the stock apears to be less risky and, when comparing its historical volatility, EMBASSY OFFICE PARKS is 2.15 times less risky than General Insurance. The stock trades about -0.29 of its potential returns per unit of risk. The General Insurance is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 36,920 in General Insurance on September 1, 2024 and sell it today you would earn a total of 3,040 from holding General Insurance or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
EMBASSY OFFICE PARKS vs. General Insurance
Performance |
| Timeline |
| EMBASSY OFFICE PARKS |
| General Insurance |
EMBASSY OFFICE and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMBASSY OFFICE and General Insurance
The main advantage of trading using opposite EMBASSY OFFICE and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMBASSY OFFICE position performs unexpectedly, General 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 General Insurance will offset losses from the drop in General Insurance's long position.| EMBASSY OFFICE vs. Coffee Day Enterprises | EMBASSY OFFICE vs. PB Fintech Limited | EMBASSY OFFICE vs. Vidhi Specialty Food | EMBASSY OFFICE vs. Sapphire Foods India |
| General Insurance vs. R S Software | General Insurance vs. Newgen Software Technologies | General Insurance vs. LT Foods Limited | General Insurance vs. Ami Organics Limited |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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