Correlation Between General Insurance and Viceroy Hotels
Can any of the company-specific risk be diversified away by investing in both General Insurance and Viceroy Hotels at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining General Insurance and Viceroy Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Insurance and Viceroy Hotels Limited, you can compare the effects of market volatilities on General Insurance and Viceroy Hotels 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 Viceroy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Viceroy Hotels.
Diversification Opportunities for General Insurance and Viceroy Hotels
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between General and Viceroy is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and Viceroy Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viceroy Hotels 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 Viceroy Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viceroy Hotels has no effect on the direction of General Insurance i.e., General Insurance and Viceroy Hotels go up and down completely randomly.
Pair Corralation between General Insurance and Viceroy Hotels
Assuming the 90 days trading horizon General Insurance is expected to generate 8.8 times less return on investment than Viceroy Hotels. But when comparing it to its historical volatility, General Insurance is 14.54 times less risky than Viceroy Hotels. It trades about 0.08 of its potential returns per unit of risk. Viceroy Hotels Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Viceroy Hotels Limited on October 26, 2024 and sell it today you would earn a total of 11,609 from holding Viceroy Hotels Limited or generate 5528.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.38% |
| Values | Daily Returns |
General Insurance vs. Viceroy Hotels Limited
Performance |
| Timeline |
| General Insurance |
| Viceroy Hotels |
General Insurance and Viceroy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Viceroy Hotels
The main advantage of trading using opposite General Insurance and Viceroy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance position performs unexpectedly, Viceroy Hotels 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 Viceroy Hotels will offset losses from the drop in Viceroy Hotels' long position.| General Insurance vs. State Bank of | General Insurance vs. Reliance Industries Limited | General Insurance vs. HDFC Bank Limited | General Insurance vs. Tata Motors Limited |
| Viceroy Hotels vs. Agro Tech Foods | Viceroy Hotels vs. Computer Age Management | Viceroy Hotels vs. Kohinoor Foods Limited | Viceroy Hotels vs. Hemisphere Properties India |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |