Correlation Between IGI Life and NetSol Technologies
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By analyzing existing cross correlation between IGI Life Insurance and NetSol Technologies, you can compare the effects of market volatilities on IGI Life and NetSol Technologies 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 NetSol Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGI Life and NetSol Technologies.
Diversification Opportunities for IGI Life and NetSol Technologies
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IGI and NetSol is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding IGI Life Insurance and NetSol Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetSol Technologies 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 NetSol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetSol Technologies has no effect on the direction of IGI Life i.e., IGI Life and NetSol Technologies go up and down completely randomly.
Pair Corralation between IGI Life and NetSol Technologies
Assuming the 90 days trading horizon IGI Life Insurance is expected to generate 1.83 times more return on investment than NetSol Technologies. However, IGI Life is 1.83 times more volatile than NetSol Technologies. It trades about 0.0 of its potential returns per unit of risk. NetSol Technologies is currently generating about -0.02 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 | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
IGI Life Insurance vs. NetSol Technologies
Performance |
| Timeline |
| IGI Life Insurance |
| NetSol Technologies |
IGI Life and NetSol Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGI Life and NetSol Technologies
The main advantage of trading using opposite IGI Life and NetSol Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGI Life position performs unexpectedly, NetSol Technologies 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 NetSol Technologies will offset losses from the drop in NetSol Technologies' 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 |
| NetSol Technologies vs. K Electric | NetSol Technologies vs. Lucky Cement | NetSol Technologies vs. Hub Power | NetSol Technologies vs. Pakistan Telecommunication |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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