Correlation Between Indara Insurance and Navakij Insurance
Can any of the company-specific risk be diversified away by investing in both Indara Insurance and Navakij 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 Indara Insurance and Navakij Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indara Insurance Public and The Navakij Insurance, you can compare the effects of market volatilities on Indara Insurance and Navakij 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 Indara Insurance with a short position of Navakij Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indara Insurance and Navakij Insurance.
Diversification Opportunities for Indara Insurance and Navakij Insurance
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indara and Navakij is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Indara Insurance Public and The Navakij Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navakij Insurance and Indara Insurance 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 Indara Insurance Public are associated (or correlated) with Navakij Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navakij Insurance has no effect on the direction of Indara Insurance i.e., Indara Insurance and Navakij Insurance go up and down completely randomly.
Pair Corralation between Indara Insurance and Navakij Insurance
Assuming the 90 days trading horizon Indara Insurance is expected to generate 1.04 times less return on investment than Navakij Insurance. In addition to that, Indara Insurance is 1.0 times more volatile than The Navakij Insurance. It trades about 0.05 of its total potential returns per unit of risk. The Navakij Insurance is currently generating about 0.06 per unit of volatility. If you would invest 2,650 in The Navakij Insurance on September 14, 2024 and sell it today you would lose (160.00) from holding The Navakij Insurance or give up 6.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indara Insurance Public vs. The Navakij Insurance
Performance |
| Timeline |
| Indara Insurance Public |
| Navakij Insurance |
Indara Insurance and Navakij Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indara Insurance and Navakij Insurance
The main advantage of trading using opposite Indara Insurance and Navakij Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indara Insurance position performs unexpectedly, Navakij 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 Navakij Insurance will offset losses from the drop in Navakij Insurance's long position.| Indara Insurance vs. KGI Securities Public | Indara Insurance vs. Lalin Property Public | Indara Insurance vs. Hwa Fong Rubber | Indara Insurance vs. MCS Steel Public |
| Navakij Insurance vs. Ocean Glass Public | Navakij Insurance vs. Pan Asia Footwear | Navakij Insurance vs. Nonthavej Hospital Public | Navakij Insurance vs. Newcity 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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