Correlation Between General Insurance and OnMobile Global
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By analyzing existing cross correlation between General Insurance and OnMobile Global Limited, you can compare the effects of market volatilities on General Insurance and OnMobile Global 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 OnMobile Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and OnMobile Global.
Diversification Opportunities for General Insurance and OnMobile Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between General and OnMobile is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and OnMobile Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OnMobile Global 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 OnMobile Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OnMobile Global has no effect on the direction of General Insurance i.e., General Insurance and OnMobile Global go up and down completely randomly.
Pair Corralation between General Insurance and OnMobile Global
Assuming the 90 days trading horizon General Insurance is expected to generate 0.69 times more return on investment than OnMobile Global. However, General Insurance is 1.44 times less risky than OnMobile Global. It trades about -0.01 of its potential returns per unit of risk. OnMobile Global Limited is currently generating about -0.02 per unit of risk. If you would invest 41,155 in General Insurance on September 2, 2024 and sell it today you would lose (1,195) from holding General Insurance or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Insurance vs. OnMobile Global Limited
Performance |
| Timeline |
| General Insurance |
| OnMobile Global |
General Insurance and OnMobile Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and OnMobile Global
The main advantage of trading using opposite General Insurance and OnMobile Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, OnMobile Global 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 OnMobile Global will offset losses from the drop in OnMobile Global'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 |
| OnMobile Global vs. Baazar Style Retail | OnMobile Global vs. Dhunseri Investments Limited | OnMobile Global vs. Tata Investment | OnMobile Global vs. General 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 Stocks Directory module to find actively traded stocks across global markets.
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