Correlation Between General Insurance and Aster DM
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By analyzing existing cross correlation between General Insurance and Aster DM Healthcare, you can compare the effects of market volatilities on General Insurance and Aster DM 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 Aster DM. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Aster DM.
Diversification Opportunities for General Insurance and Aster DM
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between General and Aster is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Aster DM Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aster DM Healthcare 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 Aster DM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aster DM Healthcare has no effect on the direction of General Insurance i.e., General Insurance and Aster DM go up and down completely randomly.
Pair Corralation between General Insurance and Aster DM
Assuming the 90 days trading horizon General Insurance is expected to generate 2.27 times more return on investment than Aster DM. However, General Insurance is 2.27 times more volatile than Aster DM Healthcare. It trades about -0.08 of its potential returns per unit of risk. Aster DM Healthcare is currently generating about -0.25 per unit of risk. If you would invest 43,505 in General Insurance on November 7, 2024 and sell it today you would lose (3,365) from holding General Insurance or give up 7.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Insurance vs. Aster DM Healthcare
Performance |
| Timeline |
| General Insurance |
| Aster DM Healthcare |
General Insurance and Aster DM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Aster DM
The main advantage of trading using opposite General Insurance and Aster DM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Aster DM 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 Aster DM will offset losses from the drop in Aster DM's long position.| General Insurance vs. Jindal Drilling And | General Insurance vs. Rajnandini Metal Limited | General Insurance vs. Credo Brands Marketing | General Insurance vs. Cantabil Retail India |
| Aster DM vs. Consolidated Construction Consortium | Aster DM vs. Biofil Chemicals Pharmaceuticals | Aster DM vs. Refex Industries Limited | Aster DM vs. Kingfa Science Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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