Correlation Between Ingress Industrial and Indara Insurance
Can any of the company-specific risk be diversified away by investing in both Ingress Industrial and Indara Insurance 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 Ingress Industrial and Indara Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingress Industrial Public and Indara Insurance Public, you can compare the effects of market volatilities on Ingress Industrial and Indara 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 Ingress Industrial with a short position of Indara Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingress Industrial and Indara Insurance.
Diversification Opportunities for Ingress Industrial and Indara Insurance
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ingress and Indara is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ingress Industrial Public and Indara Insurance Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indara Insurance Public and Ingress Industrial 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 Ingress Industrial Public are associated (or correlated) with Indara Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indara Insurance Public has no effect on the direction of Ingress Industrial i.e., Ingress Industrial and Indara Insurance go up and down completely randomly.
Pair Corralation between Ingress Industrial and Indara Insurance
Assuming the 90 days trading horizon Ingress Industrial Public is expected to generate 1.0 times more return on investment than Indara Insurance. However, Ingress Industrial is 1.0 times more volatile than Indara Insurance Public. It trades about 0.05 of its potential returns per unit of risk. Indara Insurance Public is currently generating about 0.05 per unit of risk. If you would invest 48.00 in Ingress Industrial Public on September 14, 2024 and sell it today you would lose (15.00) from holding Ingress Industrial Public or give up 31.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingress Industrial Public vs. Indara Insurance Public
Performance |
| Timeline |
| Ingress Industrial Public |
| Indara Insurance Public |
Ingress Industrial and Indara Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingress Industrial and Indara Insurance
The main advantage of trading using opposite Ingress Industrial and Indara Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingress Industrial position performs unexpectedly, Indara 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 Indara Insurance will offset losses from the drop in Indara Insurance's long position.| Ingress Industrial vs. Hwa Fong Rubber | Ingress Industrial vs. AAPICO Hitech Public | Ingress Industrial vs. Haad Thip Public | Ingress Industrial vs. Italian Thai Development Public |
| Indara Insurance vs. KGI Securities Public | Indara Insurance vs. Lalin Property Public | Indara Insurance vs. Hwa Fong Rubber | Indara Insurance vs. MCS Steel Public |
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 Stocks Directory module to find actively traded stocks across global markets.
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