Correlation Between INDUSTRIAL MEDICAL and AXAMANSARD INSURANCE
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and AXAMANSARD INSURANCE PLC, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL and AXAMANSARD INSURANCE 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 INDUSTRIAL MEDICAL with a short position of AXAMANSARD INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and AXAMANSARD INSURANCE.
Diversification Opportunities for INDUSTRIAL MEDICAL and AXAMANSARD INSURANCE
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INDUSTRIAL and AXAMANSARD is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES and AXAMANSARD INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXAMANSARD INSURANCE PLC and INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL GASES are associated (or correlated) with AXAMANSARD INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXAMANSARD INSURANCE PLC has no effect on the direction of INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and AXAMANSARD INSURANCE go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and AXAMANSARD INSURANCE
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL GASES is expected to generate 0.01 times more return on investment than AXAMANSARD INSURANCE. However, INDUSTRIAL MEDICAL GASES is 67.65 times less risky than AXAMANSARD INSURANCE. It trades about 0.21 of its potential returns per unit of risk. AXAMANSARD INSURANCE PLC is currently generating about -0.15 per unit of risk. If you would invest 3,795 in INDUSTRIAL MEDICAL GASES on November 4, 2024 and sell it today you would earn a total of 5.00 from holding INDUSTRIAL MEDICAL GASES or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INDUSTRIAL MEDICAL GASES vs. AXAMANSARD INSURANCE PLC
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| AXAMANSARD INSURANCE PLC |
INDUSTRIAL MEDICAL and AXAMANSARD INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and AXAMANSARD INSURANCE
The main advantage of trading using opposite INDUSTRIAL MEDICAL and AXAMANSARD INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL position performs unexpectedly, AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE will offset losses from the drop in AXAMANSARD INSURANCE's long position.| INDUSTRIAL MEDICAL vs. UNION HOMES REAL | INDUSTRIAL MEDICAL vs. JAIZ BANK PLC | INDUSTRIAL MEDICAL vs. AFROMEDIA PLC | INDUSTRIAL MEDICAL vs. FIDSON HEALTHCARE PLC |
| AXAMANSARD INSURANCE vs. CHAMPION BREWERIES PLC | AXAMANSARD INSURANCE vs. ABBEY MORTGAGE BANK | AXAMANSARD INSURANCE vs. CUSTODIAN INVESTMENT PLC | AXAMANSARD INSURANCE vs. INTERNATIONAL ENERGY 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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