Correlation Between General Insurance and Thirumalai Chemicals
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By analyzing existing cross correlation between General Insurance and Thirumalai Chemicals Limited, you can compare the effects of market volatilities on General Insurance and Thirumalai Chemicals 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 Thirumalai Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Thirumalai Chemicals.
Diversification Opportunities for General Insurance and Thirumalai Chemicals
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between General and Thirumalai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Thirumalai Chemicals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thirumalai Chemicals 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 Thirumalai Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thirumalai Chemicals has no effect on the direction of General Insurance i.e., General Insurance and Thirumalai Chemicals go up and down completely randomly.
Pair Corralation between General Insurance and Thirumalai Chemicals
Assuming the 90 days trading horizon General Insurance is expected to generate 1.06 times less return on investment than Thirumalai Chemicals. But when comparing it to its historical volatility, General Insurance is 1.24 times less risky than Thirumalai Chemicals. It trades about 0.11 of its potential returns per unit of risk. Thirumalai Chemicals Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 24,155 in Thirumalai Chemicals Limited on January 6, 2025 and sell it today you would earn a total of 1,410 from holding Thirumalai Chemicals Limited or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Insurance vs. Thirumalai Chemicals Limited
Performance |
| Timeline |
| General Insurance |
| Thirumalai Chemicals |
General Insurance and Thirumalai Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Thirumalai Chemicals
The main advantage of trading using opposite General Insurance and Thirumalai Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Thirumalai Chemicals 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 Thirumalai Chemicals will offset losses from the drop in Thirumalai Chemicals' long position.| General Insurance vs. Syrma SGS Technology | General Insurance vs. Selan Exploration Technology | General Insurance vs. Hexaware Technologies Limited | General Insurance vs. AVALON TECHNOLOGIES LTD |
| Thirumalai Chemicals vs. NMDC Limited | Thirumalai Chemicals vs. Steel Authority of | Thirumalai Chemicals vs. Embassy Office Parks | Thirumalai Chemicals vs. Jai Balaji Industries |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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