Correlation Between IGI Life and Air Link
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By analyzing existing cross correlation between IGI Life Insurance and Air Link Communication, you can compare the effects of market volatilities on IGI Life and Air Link 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 IGI Life with a short position of Air Link. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGI Life and Air Link.
Diversification Opportunities for IGI Life and Air Link
Poor diversification
The 3 months correlation between IGI and Air is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding IGI Life Insurance and Air Link Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Link Communication and IGI Life 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 IGI Life Insurance are associated (or correlated) with Air Link. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Link Communication has no effect on the direction of IGI Life i.e., IGI Life and Air Link go up and down completely randomly.
Pair Corralation between IGI Life and Air Link
Assuming the 90 days trading horizon IGI Life Insurance is expected to generate 1.62 times more return on investment than Air Link. However, IGI Life is 1.62 times more volatile than Air Link Communication. It trades about 0.0 of its potential returns per unit of risk. Air Link Communication is currently generating about -0.15 per unit of risk. If you would invest 1,549 in IGI Life Insurance on November 7, 2024 and sell it today you would lose (22.00) from holding IGI Life Insurance or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.82% |
| Values | Daily Returns |
IGI Life Insurance vs. Air Link Communication
Performance |
| Timeline |
| IGI Life Insurance |
| Air Link Communication |
IGI Life and Air Link Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGI Life and Air Link
The main advantage of trading using opposite IGI Life and Air Link positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGI Life position performs unexpectedly, Air Link 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 Air Link will offset losses from the drop in Air Link's long position.| IGI Life vs. Agha Steel Industries | IGI Life vs. Honda Atlas Cars | IGI Life vs. Metropolitan Steel Corp | IGI Life vs. National Foods |
| Air Link vs. Habib Insurance | Air Link vs. Ghandhara Automobile | Air Link vs. Shadab Textile Mills | Air Link vs. Century 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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