Correlation Between General Insurance and Amber Enterprises
Can any of the company-specific risk be diversified away by investing in both General Insurance and Amber Enterprises 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 General Insurance and Amber Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Insurance and Amber Enterprises India, you can compare the effects of market volatilities on General Insurance and Amber Enterprises 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 General Insurance with a short position of Amber Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Amber Enterprises.
Diversification Opportunities for General Insurance and Amber Enterprises
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between General and Amber is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Amber Enterprises India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amber Enterprises India and General 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 General Insurance are associated (or correlated) with Amber Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amber Enterprises India has no effect on the direction of General Insurance i.e., General Insurance and Amber Enterprises go up and down completely randomly.
Pair Corralation between General Insurance and Amber Enterprises
Assuming the 90 days trading horizon General Insurance is expected to generate 0.82 times more return on investment than Amber Enterprises. However, General Insurance is 1.22 times less risky than Amber Enterprises. It trades about 0.38 of its potential returns per unit of risk. Amber Enterprises India is currently generating about -0.1 per unit of risk. If you would invest 36,630 in General Insurance on September 13, 2024 and sell it today you would earn a total of 5,905 from holding General Insurance or generate 16.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Insurance vs. Amber Enterprises India
Performance |
| Timeline |
| General Insurance |
| Amber Enterprises India |
General Insurance and Amber Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Amber Enterprises
The main advantage of trading using opposite General Insurance and Amber Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Amber Enterprises 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 Amber Enterprises will offset losses from the drop in Amber Enterprises' long position.| General Insurance vs. Kingfa Science Technology | General Insurance vs. Rico Auto Industries | General Insurance vs. GACM Technologies Limited | General Insurance vs. COSMO FIRST LIMITED |
| Amber Enterprises vs. Baazar Style Retail | Amber Enterprises vs. General Insurance | Amber Enterprises vs. Alkali Metals Limited | Amber Enterprises vs. Life Insurance |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance |