Correlation Between International General and Fundamental Global
Can any of the company-specific risk be diversified away by investing in both International General and Fundamental Global 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 International General and Fundamental Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International General Insurance and Fundamental Global, you can compare the effects of market volatilities on International General and Fundamental Global 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 International General with a short position of Fundamental Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of International General and Fundamental Global.
Diversification Opportunities for International General and Fundamental Global
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between International and Fundamental is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding International General Insuranc and Fundamental Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Global and International General 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 International General Insurance are associated (or correlated) with Fundamental Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Global has no effect on the direction of International General i.e., International General and Fundamental Global go up and down completely randomly.
Pair Corralation between International General and Fundamental Global
Given the investment horizon of 90 days International General Insurance is expected to generate 0.35 times more return on investment than Fundamental Global. However, International General Insurance is 2.84 times less risky than Fundamental Global. It trades about 0.13 of its potential returns per unit of risk. Fundamental Global is currently generating about -0.01 per unit of risk. If you would invest 784.00 in International General Insurance on October 20, 2024 and sell it today you would earn a total of 1,614 from holding International General Insurance or generate 205.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International General Insuranc vs. Fundamental Global
Performance |
| Timeline |
| International General |
| Fundamental Global |
International General and Fundamental Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International General and Fundamental Global
The main advantage of trading using opposite International General and Fundamental Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International General position performs unexpectedly, Fundamental Global 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 Fundamental Global will offset losses from the drop in Fundamental Global's long position.| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
| Fundamental Global vs. International General Insurance | Fundamental Global vs. BB Seguridade Participacoes | Fundamental Global vs. Goosehead Insurance | Fundamental Global vs. Enstar Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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