Correlation Between Fundamental Global and International General
Can any of the company-specific risk be diversified away by investing in both Fundamental Global and International General 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 Fundamental Global and International General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Global and International General Insurance, you can compare the effects of market volatilities on Fundamental Global and International General 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 Fundamental Global with a short position of International General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Global and International General.
Diversification Opportunities for Fundamental Global and International General
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fundamental and International is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Global and International General Insuranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International General and Fundamental Global 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 Fundamental Global are associated (or correlated) with International General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International General has no effect on the direction of Fundamental Global i.e., Fundamental Global and International General go up and down completely randomly.
Pair Corralation between Fundamental Global and International General
Considering the 90-day investment horizon Fundamental Global is expected to under-perform the International General. In addition to that, Fundamental Global is 2.73 times more volatile than International General Insurance. It trades about 0.0 of its total potential returns per unit of risk. International General Insurance is currently generating about 0.14 per unit of volatility. If you would invest 786.00 in International General Insurance on August 31, 2024 and sell it today you would earn a total of 1,805 from holding International General Insurance or generate 229.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Global vs. International General Insuranc
Performance |
| Timeline |
| Fundamental Global |
| International General |
Fundamental Global and International General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Global and International General
The main advantage of trading using opposite Fundamental Global and International General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Global position performs unexpectedly, International General 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 International General will offset losses from the drop in International General's long position.| Fundamental Global vs. International General Insurance | Fundamental Global vs. BB Seguridade Participacoes | Fundamental Global vs. Goosehead Insurance | Fundamental Global vs. Enstar Group Limited |
| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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