Correlation Between Interlife General and As Commercial
Can any of the company-specific risk be diversified away by investing in both Interlife General and As Commercial 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 Interlife General and As Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interlife General Insurance and As Commercial Industrial, you can compare the effects of market volatilities on Interlife General and As Commercial 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 Interlife General with a short position of As Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlife General and As Commercial.
Diversification Opportunities for Interlife General and As Commercial
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Interlife and ASCO is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Interlife General Insurance and As Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on As Commercial Industrial and Interlife General 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 Interlife General Insurance are associated (or correlated) with As Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of As Commercial Industrial has no effect on the direction of Interlife General i.e., Interlife General and As Commercial go up and down completely randomly.
Pair Corralation between Interlife General and As Commercial
Assuming the 90 days trading horizon Interlife General Insurance is expected to generate 1.26 times more return on investment than As Commercial. However, Interlife General is 1.26 times more volatile than As Commercial Industrial. It trades about -0.08 of its potential returns per unit of risk. As Commercial Industrial is currently generating about -0.17 per unit of risk. If you would invest 435.00 in Interlife General Insurance on August 26, 2024 and sell it today you would lose (7.00) from holding Interlife General Insurance or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interlife General Insurance vs. As Commercial Industrial
Performance |
| Timeline |
| Interlife General |
| As Commercial Industrial |
Interlife General and As Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlife General and As Commercial
The main advantage of trading using opposite Interlife General and As Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlife General position performs unexpectedly, As Commercial 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 As Commercial will offset losses from the drop in As Commercial's long position.| Interlife General vs. Mytilineos SA | Interlife General vs. Motor Oil Corinth | Interlife General vs. Hellenic Petroleum SA | Interlife General vs. National Bank of |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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