Correlation Between General Insurance and Orient Technologies
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By analyzing existing cross correlation between General Insurance and Orient Technologies Limited, you can compare the effects of market volatilities on General Insurance and Orient Technologies 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 Orient Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Orient Technologies.
Diversification Opportunities for General Insurance and Orient Technologies
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between General and Orient is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Orient Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Technologies 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 Orient Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Technologies has no effect on the direction of General Insurance i.e., General Insurance and Orient Technologies go up and down completely randomly.
Pair Corralation between General Insurance and Orient Technologies
Assuming the 90 days trading horizon General Insurance is expected to under-perform the Orient Technologies. But the stock apears to be less risky and, when comparing its historical volatility, General Insurance is 1.36 times less risky than Orient Technologies. The stock trades about -0.12 of its potential returns per unit of risk. The Orient Technologies Limited is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 44,940 in Orient Technologies Limited on October 25, 2024 and sell it today you would earn a total of 14,810 from holding Orient Technologies Limited or generate 32.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Insurance vs. Orient Technologies Limited
Performance |
| Timeline |
| General Insurance |
| Orient Technologies |
General Insurance and Orient Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Orient Technologies
The main advantage of trading using opposite General Insurance and Orient Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Orient Technologies 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 Orient Technologies will offset losses from the drop in Orient Technologies' long position.| General Insurance vs. Reliance Industrial Infrastructure | General Insurance vs. Lakshmi Finance Industrial | General Insurance vs. Shivalik Bimetal Controls | General Insurance vs. Hisar Metal Industries |
| Orient Technologies vs. General Insurance | Orient Technologies vs. RBL Bank Limited | Orient Technologies vs. Kotak Mahindra Bank | Orient Technologies vs. Tamilnad Mercantile Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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