Correlation Between Insignia Financial and Retail Food
Can any of the company-specific risk be diversified away by investing in both Insignia Financial and Retail Food 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 Insignia Financial and Retail Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insignia Financial and Retail Food Group, you can compare the effects of market volatilities on Insignia Financial and Retail Food 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 Insignia Financial with a short position of Retail Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insignia Financial and Retail Food.
Diversification Opportunities for Insignia Financial and Retail Food
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Insignia and Retail is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Insignia Financial and Retail Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Food Group and Insignia Financial 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 Insignia Financial are associated (or correlated) with Retail Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Food Group has no effect on the direction of Insignia Financial i.e., Insignia Financial and Retail Food go up and down completely randomly.
Pair Corralation between Insignia Financial and Retail Food
Assuming the 90 days trading horizon Insignia Financial is expected to generate 0.89 times more return on investment than Retail Food. However, Insignia Financial is 1.13 times less risky than Retail Food. It trades about 0.24 of its potential returns per unit of risk. Retail Food Group is currently generating about 0.05 per unit of risk. If you would invest 227.00 in Insignia Financial on August 29, 2024 and sell it today you would earn a total of 84.00 from holding Insignia Financial or generate 37.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Insignia Financial vs. Retail Food Group
Performance |
| Timeline |
| Insignia Financial |
| Retail Food Group |
Insignia Financial and Retail Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insignia Financial and Retail Food
The main advantage of trading using opposite Insignia Financial and Retail Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insignia Financial position performs unexpectedly, Retail Food 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 Retail Food will offset losses from the drop in Retail Food's long position.| Insignia Financial vs. Champion Iron | Insignia Financial vs. Ridley | Insignia Financial vs. Peel Mining | Insignia Financial vs. Australian Dairy Farms |
| Retail Food vs. Autosports Group | Retail Food vs. AiMedia Technologies | Retail Food vs. BKI Investment | Retail Food vs. ARN Media Limited |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |