Correlation Between Indraprastha Medical and General Insurance
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By analyzing existing cross correlation between Indraprastha Medical and General Insurance, you can compare the effects of market volatilities on Indraprastha Medical and General 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 Indraprastha Medical with a short position of General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indraprastha Medical and General Insurance.
Diversification Opportunities for Indraprastha Medical and General Insurance
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Indraprastha and General is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Indraprastha Medical and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance and Indraprastha 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 Indraprastha Medical are associated (or correlated) with General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of Indraprastha Medical i.e., Indraprastha Medical and General Insurance go up and down completely randomly.
Pair Corralation between Indraprastha Medical and General Insurance
Assuming the 90 days trading horizon Indraprastha Medical is expected to generate 1.04 times less return on investment than General Insurance. In addition to that, Indraprastha Medical is 1.55 times more volatile than General Insurance. It trades about 0.42 of its total potential returns per unit of risk. General Insurance is currently generating about 0.68 per unit of volatility. If you would invest 35,815 in General Insurance on September 18, 2024 and sell it today you would earn a total of 8,430 from holding General Insurance or generate 23.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indraprastha Medical vs. General Insurance
Performance |
| Timeline |
| Indraprastha Medical |
| General Insurance |
Indraprastha Medical and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indraprastha Medical and General Insurance
The main advantage of trading using opposite Indraprastha Medical and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indraprastha Medical position performs unexpectedly, General 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 General Insurance will offset losses from the drop in General Insurance's long position.| Indraprastha Medical vs. Blue Coast Hotels | Indraprastha Medical vs. Rainbow Childrens Medicare | Indraprastha Medical vs. Kamat Hotels Limited | Indraprastha Medical vs. MIRC Electronics Limited |
| General Insurance vs. Sonata Software Limited | General Insurance vs. Uniinfo Telecom Services | General Insurance vs. Compucom Software Limited | General Insurance vs. Indraprastha Medical |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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