Correlation Between Jubilee Life and Atlas Insurance
Can any of the company-specific risk be diversified away by investing in both Jubilee Life and Atlas 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 Jubilee Life and Atlas Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jubilee Life Insurance and Atlas Insurance, you can compare the effects of market volatilities on Jubilee Life and Atlas 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 Jubilee Life with a short position of Atlas Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilee Life and Atlas Insurance.
Diversification Opportunities for Jubilee Life and Atlas Insurance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jubilee and Atlas is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jubilee Life Insurance and Atlas Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Insurance and Jubilee Life 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 Jubilee Life Insurance are associated (or correlated) with Atlas Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Insurance has no effect on the direction of Jubilee Life i.e., Jubilee Life and Atlas Insurance go up and down completely randomly.
Pair Corralation between Jubilee Life and Atlas Insurance
Assuming the 90 days trading horizon Jubilee Life is expected to generate 1.28 times less return on investment than Atlas Insurance. In addition to that, Jubilee Life is 1.32 times more volatile than Atlas Insurance. It trades about 0.06 of its total potential returns per unit of risk. Atlas Insurance is currently generating about 0.1 per unit of volatility. If you would invest 2,836 in Atlas Insurance on November 2, 2024 and sell it today you would earn a total of 3,055 from holding Atlas Insurance or generate 107.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 87.71% |
| Values | Daily Returns |
Jubilee Life Insurance vs. Atlas Insurance
Performance |
| Timeline |
| Jubilee Life Insurance |
| Atlas Insurance |
Jubilee Life and Atlas Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilee Life and Atlas Insurance
The main advantage of trading using opposite Jubilee Life and Atlas Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilee Life position performs unexpectedly, Atlas 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 Atlas Insurance will offset losses from the drop in Atlas Insurance's long position.| Jubilee Life vs. Masood Textile Mills | Jubilee Life vs. Fauji Foods | Jubilee Life vs. KSB Pumps | Jubilee Life vs. Mari Petroleum |
| Atlas Insurance vs. Masood Textile Mills | Atlas Insurance vs. Fauji Foods | Atlas Insurance vs. KSB Pumps | Atlas Insurance vs. Mari Petroleum |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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