Correlation Between General Insurance and Parag Milk
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By analyzing existing cross correlation between General Insurance and Parag Milk Foods, you can compare the effects of market volatilities on General Insurance and Parag Milk 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 Parag Milk. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Parag Milk.
Diversification Opportunities for General Insurance and Parag Milk
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between General and Parag is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Parag Milk Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parag Milk Foods 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 Parag Milk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parag Milk Foods has no effect on the direction of General Insurance i.e., General Insurance and Parag Milk go up and down completely randomly.
Pair Corralation between General Insurance and Parag Milk
Assuming the 90 days trading horizon General Insurance is expected to generate 2.19 times more return on investment than Parag Milk. However, General Insurance is 2.19 times more volatile than Parag Milk Foods. It trades about 0.11 of its potential returns per unit of risk. Parag Milk Foods is currently generating about -0.38 per unit of risk. If you would invest 41,390 in General Insurance on October 10, 2024 and sell it today you would earn a total of 3,280 from holding General Insurance or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Insurance vs. Parag Milk Foods
Performance |
| Timeline |
| General Insurance |
| Parag Milk Foods |
General Insurance and Parag Milk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Parag Milk
The main advantage of trading using opposite General Insurance and Parag Milk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Parag Milk 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 Parag Milk will offset losses from the drop in Parag Milk's long position.| General Insurance vs. Kingfa Science Technology | General Insurance vs. Rico Auto Industries | General Insurance vs. COSMO FIRST LIMITED | General Insurance vs. Delta Manufacturing Limited |
| Parag Milk vs. Praxis Home Retail | Parag Milk vs. Associated Alcohols Breweries | Parag Milk vs. Embassy Office Parks | Parag Milk vs. Allied Blenders Distillers |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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