Correlation Between IDI Insurance and Glassbox
Can any of the company-specific risk be diversified away by investing in both IDI Insurance and Glassbox 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 Glassbox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDI Insurance and Glassbox, you can compare the effects of market volatilities on IDI Insurance and Glassbox 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 Glassbox. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDI Insurance and Glassbox.
Diversification Opportunities for IDI Insurance and Glassbox
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between IDI and Glassbox is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding IDI Insurance and Glassbox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glassbox 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 Glassbox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glassbox has no effect on the direction of IDI Insurance i.e., IDI Insurance and Glassbox go up and down completely randomly.
Pair Corralation between IDI Insurance and Glassbox
Assuming the 90 days trading horizon IDI Insurance is expected to generate 1.29 times less return on investment than Glassbox. But when comparing it to its historical volatility, IDI Insurance is 1.97 times less risky than Glassbox. It trades about 0.09 of its potential returns per unit of risk. Glassbox is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 226,100 in Glassbox on September 3, 2024 and sell it today you would earn a total of 179,800 from holding Glassbox or generate 79.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.11% |
| Values | Daily Returns |
IDI Insurance vs. Glassbox
Performance |
| Timeline |
| IDI Insurance |
| Glassbox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
IDI Insurance and Glassbox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDI Insurance and Glassbox
The main advantage of trading using opposite IDI Insurance and Glassbox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDI Insurance position performs unexpectedly, Glassbox 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 Glassbox will offset losses from the drop in Glassbox'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 |
| Glassbox vs. Sarine Technologies | Glassbox vs. Batm Advanced Communications | Glassbox vs. IDI Insurance | Glassbox vs. Libra Insurance |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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