Correlation Between IDI Insurance and Blender Financial
Can any of the company-specific risk be diversified away by investing in both IDI Insurance and Blender Financial 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 IDI Insurance and Blender Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDI Insurance and Blender Financial Technologies, you can compare the effects of market volatilities on IDI Insurance and Blender Financial 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 IDI Insurance with a short position of Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDI Insurance and Blender Financial.
Diversification Opportunities for IDI Insurance and Blender Financial
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IDI and Blender is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding IDI Insurance and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and IDI 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 IDI Insurance are associated (or correlated) with Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of IDI Insurance i.e., IDI Insurance and Blender Financial go up and down completely randomly.
Pair Corralation between IDI Insurance and Blender Financial
Assuming the 90 days trading horizon IDI Insurance is expected to generate 0.59 times more return on investment than Blender Financial. However, IDI Insurance is 1.7 times less risky than Blender Financial. It trades about 0.13 of its potential returns per unit of risk. Blender Financial Technologies is currently generating about -0.14 per unit of risk. If you would invest 1,275,000 in IDI Insurance on September 1, 2024 and sell it today you would earn a total of 53,000 from holding IDI Insurance or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDI Insurance vs. Blender Financial Technologies
Performance |
| Timeline |
| IDI Insurance |
| Blender Financial |
IDI Insurance and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDI Insurance and Blender Financial
The main advantage of trading using opposite IDI Insurance and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDI Insurance position performs unexpectedly, Blender Financial 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 Blender Financial will offset losses from the drop in Blender Financial's long position.| IDI Insurance vs. Harel Insurance Investments | IDI Insurance vs. Migdal Insurance | IDI Insurance vs. Menora Miv Hld | IDI Insurance vs. The Phoenix Holdings |
| Blender Financial vs. Isracard | Blender Financial vs. Jacob Finance And | Blender Financial vs. Bull Trading And |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |