Correlation Between General Insurance and Speciality Restaurants
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By analyzing existing cross correlation between General Insurance and Speciality Restaurants Limited, you can compare the effects of market volatilities on General Insurance and Speciality Restaurants 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 Speciality Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Speciality Restaurants.
Diversification Opportunities for General Insurance and Speciality Restaurants
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between General and Speciality is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Speciality Restaurants Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speciality Restaurants 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 Speciality Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speciality Restaurants has no effect on the direction of General Insurance i.e., General Insurance and Speciality Restaurants go up and down completely randomly.
Pair Corralation between General Insurance and Speciality Restaurants
Assuming the 90 days trading horizon General Insurance is expected to generate 3.38 times more return on investment than Speciality Restaurants. However, General Insurance is 3.38 times more volatile than Speciality Restaurants Limited. It trades about 0.08 of its potential returns per unit of risk. Speciality Restaurants Limited is currently generating about -0.33 per unit of risk. If you would invest 42,595 in General Insurance on October 11, 2024 and sell it today you would earn a total of 2,075 from holding General Insurance or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Insurance vs. Speciality Restaurants Limited
Performance |
| Timeline |
| General Insurance |
| Speciality Restaurants |
General Insurance and Speciality Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Speciality Restaurants
The main advantage of trading using opposite General Insurance and Speciality Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Speciality Restaurants 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 Speciality Restaurants will offset losses from the drop in Speciality Restaurants' long position.| General Insurance vs. Consolidated Construction Consortium | General Insurance vs. Action Construction Equipment | General Insurance vs. Transport of | General Insurance vs. Total Transport Systems |
| Speciality Restaurants vs. LLOYDS METALS AND | Speciality Restaurants vs. Alkali Metals Limited | Speciality Restaurants vs. Hindustan Construction | Speciality Restaurants vs. Aban Offshore 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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