Correlation Between FISH PAYK and INSURANCE AUST
Can any of the company-specific risk be diversified away by investing in both FISH PAYK and INSURANCE AUST 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 FISH PAYK and INSURANCE AUST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FISH PAYK HEALTH and INSURANCE AUST GRP, you can compare the effects of market volatilities on FISH PAYK and INSURANCE AUST 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 FISH PAYK with a short position of INSURANCE AUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of FISH PAYK and INSURANCE AUST.
Diversification Opportunities for FISH PAYK and INSURANCE AUST
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FISH and INSURANCE is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding FISH PAYK HEALTH and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP and FISH PAYK 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 FISH PAYK HEALTH are associated (or correlated) with INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of FISH PAYK i.e., FISH PAYK and INSURANCE AUST go up and down completely randomly.
Pair Corralation between FISH PAYK and INSURANCE AUST
Assuming the 90 days trading horizon FISH PAYK is expected to generate 1.01 times less return on investment than INSURANCE AUST. In addition to that, FISH PAYK is 1.32 times more volatile than INSURANCE AUST GRP. It trades about 0.1 of its total potential returns per unit of risk. INSURANCE AUST GRP is currently generating about 0.13 per unit of volatility. If you would invest 314.00 in INSURANCE AUST GRP on September 12, 2024 and sell it today you would earn a total of 184.00 from holding INSURANCE AUST GRP or generate 58.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FISH PAYK HEALTH vs. INSURANCE AUST GRP
Performance |
| Timeline |
| FISH PAYK HEALTH |
| INSURANCE AUST GRP |
FISH PAYK and INSURANCE AUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FISH PAYK and INSURANCE AUST
The main advantage of trading using opposite FISH PAYK and INSURANCE AUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FISH PAYK position performs unexpectedly, INSURANCE AUST 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 INSURANCE AUST will offset losses from the drop in INSURANCE AUST's long position.| FISH PAYK vs. INSURANCE AUST GRP | FISH PAYK vs. SBI Insurance Group | FISH PAYK vs. GRUPO CARSO A1 | FISH PAYK vs. Reinsurance Group of |
| INSURANCE AUST vs. Apple Inc | INSURANCE AUST vs. Apple Inc | INSURANCE AUST vs. Apple Inc | INSURANCE AUST vs. Apple Inc |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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