Correlation Between General Insurance and Metropolis Healthcare
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By analyzing existing cross correlation between General Insurance and Metropolis Healthcare Limited, you can compare the effects of market volatilities on General Insurance and Metropolis Healthcare 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 Metropolis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Metropolis Healthcare.
Diversification Opportunities for General Insurance and Metropolis Healthcare
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between General and Metropolis is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Metropolis Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolis 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 Metropolis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolis Healthcare has no effect on the direction of General Insurance i.e., General Insurance and Metropolis Healthcare go up and down completely randomly.
Pair Corralation between General Insurance and Metropolis Healthcare
Assuming the 90 days trading horizon General Insurance is expected to generate 0.99 times more return on investment than Metropolis Healthcare. However, General Insurance is 1.01 times less risky than Metropolis Healthcare. It trades about 0.25 of its potential returns per unit of risk. Metropolis Healthcare Limited is currently generating about -0.01 per unit of risk. If you would invest 36,325 in General Insurance on September 5, 2024 and sell it today you would earn a total of 4,340 from holding General Insurance or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Insurance vs. Metropolis Healthcare Limited
Performance |
| Timeline |
| General Insurance |
| Metropolis Healthcare |
General Insurance and Metropolis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Metropolis Healthcare
The main advantage of trading using opposite General Insurance and Metropolis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Metropolis Healthcare 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 Metropolis Healthcare will offset losses from the drop in Metropolis Healthcare's long position.| General Insurance vs. Reliance Industries Limited | General Insurance vs. Oil Natural Gas | General Insurance vs. ICICI Bank Limited | General Insurance vs. Bharti Airtel Limited |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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