Correlation Between Grays Leasing and Atlas Insurance
Can any of the company-specific risk be diversified away by investing in both Grays Leasing and Atlas Insurance 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 Grays Leasing and Atlas Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grays Leasing and Atlas Insurance, you can compare the effects of market volatilities on Grays Leasing and Atlas Insurance 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 Grays Leasing with a short position of Atlas Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grays Leasing and Atlas Insurance.
Diversification Opportunities for Grays Leasing and Atlas Insurance
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grays and Atlas is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Grays Leasing and Atlas Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Insurance and Grays Leasing 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 Grays Leasing are associated (or correlated) with Atlas Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Insurance has no effect on the direction of Grays Leasing i.e., Grays Leasing and Atlas Insurance go up and down completely randomly.
Pair Corralation between Grays Leasing and Atlas Insurance
Assuming the 90 days trading horizon Grays Leasing is expected to generate 3.71 times more return on investment than Atlas Insurance. However, Grays Leasing is 3.71 times more volatile than Atlas Insurance. It trades about 0.06 of its potential returns per unit of risk. Atlas Insurance is currently generating about 0.13 per unit of risk. If you would invest 323.00 in Grays Leasing on August 31, 2024 and sell it today you would earn a total of 119.00 from holding Grays Leasing or generate 36.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 57.65% |
| Values | Daily Returns |
Grays Leasing vs. Atlas Insurance
Performance |
| Timeline |
| Grays Leasing |
| Atlas Insurance |
Grays Leasing and Atlas Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grays Leasing and Atlas Insurance
The main advantage of trading using opposite Grays Leasing and Atlas Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grays Leasing position performs unexpectedly, Atlas Insurance 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 Atlas Insurance will offset losses from the drop in Atlas Insurance's long position.| Grays Leasing vs. Masood Textile Mills | Grays Leasing vs. Fauji Foods | Grays Leasing vs. KSB Pumps | Grays Leasing vs. Mari Petroleum |
| Atlas Insurance vs. National Foods | Atlas Insurance vs. Ghani Chemical Industries | Atlas Insurance vs. Aisha Steel Mills | Atlas Insurance vs. Lotte Chemical Pakistan |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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