Correlation Between Jubilee Life and IGI Life
Can any of the company-specific risk be diversified away by investing in both Jubilee Life and IGI Life 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 IGI Life 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 IGI Life Insurance, you can compare the effects of market volatilities on Jubilee Life and IGI Life 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 IGI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilee Life and IGI Life.
Diversification Opportunities for Jubilee Life and IGI Life
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jubilee and IGI is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jubilee Life Insurance and IGI Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGI Life 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 IGI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGI Life Insurance has no effect on the direction of Jubilee Life i.e., Jubilee Life and IGI Life go up and down completely randomly.
Pair Corralation between Jubilee Life and IGI Life
Assuming the 90 days trading horizon Jubilee Life is expected to generate 1.44 times less return on investment than IGI Life. But when comparing it to its historical volatility, Jubilee Life Insurance is 1.58 times less risky than IGI Life. It trades about 0.06 of its potential returns per unit of risk. IGI Life Insurance is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 886.00 in IGI Life Insurance on November 1, 2024 and sell it today you would earn a total of 614.00 from holding IGI Life Insurance or generate 69.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 76.43% |
| Values | Daily Returns |
Jubilee Life Insurance vs. IGI Life Insurance
Performance |
| Timeline |
| Jubilee Life Insurance |
| IGI Life Insurance |
Jubilee Life and IGI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilee Life and IGI Life
The main advantage of trading using opposite Jubilee Life and IGI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilee Life position performs unexpectedly, IGI Life 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 IGI Life will offset losses from the drop in IGI Life's long position.| Jubilee Life vs. Masood Textile Mills | Jubilee Life vs. Fauji Foods | Jubilee Life vs. KSB Pumps | Jubilee Life vs. Mari Petroleum |
| IGI Life vs. Fateh Sports Wear | IGI Life vs. EFU General Insurance | IGI Life vs. Jubilee Life Insurance | IGI Life vs. Supernet Technologie |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |