Correlation Between General Insurance and Hilton Metal
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By analyzing existing cross correlation between General Insurance and Hilton Metal Forging, you can compare the effects of market volatilities on General Insurance and Hilton Metal 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 Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Hilton Metal.
Diversification Opportunities for General Insurance and Hilton Metal
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between General and Hilton is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging 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 Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of General Insurance i.e., General Insurance and Hilton Metal go up and down completely randomly.
Pair Corralation between General Insurance and Hilton Metal
Assuming the 90 days trading horizon General Insurance is expected to generate 0.91 times more return on investment than Hilton Metal. However, General Insurance is 1.1 times less risky than Hilton Metal. It trades about 0.05 of its potential returns per unit of risk. Hilton Metal Forging is currently generating about -0.04 per unit of risk. If you would invest 30,301 in General Insurance on September 2, 2024 and sell it today you would earn a total of 9,659 from holding General Insurance or generate 31.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
General Insurance vs. Hilton Metal Forging
Performance |
| Timeline |
| General Insurance |
| Hilton Metal Forging |
General Insurance and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Hilton Metal
The main advantage of trading using opposite General Insurance and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's long position.| General Insurance vs. Network18 Media Investments | General Insurance vs. Jindal Poly Investment | General Insurance vs. Zee Entertainment Enterprises | General Insurance vs. Shemaroo Entertainment Limited |
| Hilton Metal vs. Reliance Industries Limited | Hilton Metal vs. Life Insurance | Hilton Metal vs. Indian Oil | Hilton Metal vs. Oil Natural Gas |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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