Correlation Between Libra Insurance and Bio View
Can any of the company-specific risk be diversified away by investing in both Libra Insurance and Bio View 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 Libra Insurance and Bio View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Libra Insurance and Bio View, you can compare the effects of market volatilities on Libra Insurance and Bio View 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 Libra Insurance with a short position of Bio View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Libra Insurance and Bio View.
Diversification Opportunities for Libra Insurance and Bio View
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Libra and Bio is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Libra Insurance and Bio View in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio View and Libra 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 Libra Insurance are associated (or correlated) with Bio View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio View has no effect on the direction of Libra Insurance i.e., Libra Insurance and Bio View go up and down completely randomly.
Pair Corralation between Libra Insurance and Bio View
Assuming the 90 days trading horizon Libra Insurance is expected to generate 0.66 times more return on investment than Bio View. However, Libra Insurance is 1.51 times less risky than Bio View. It trades about 0.22 of its potential returns per unit of risk. Bio View is currently generating about 0.02 per unit of risk. If you would invest 73,970 in Libra Insurance on October 24, 2024 and sell it today you would earn a total of 24,620 from holding Libra Insurance or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Libra Insurance vs. Bio View
Performance |
| Timeline |
| Libra Insurance |
| Bio View |
Libra Insurance and Bio View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Libra Insurance and Bio View
The main advantage of trading using opposite Libra Insurance and Bio View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Libra Insurance position performs unexpectedly, Bio View 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 Bio View will offset losses from the drop in Bio View's long position.| Libra Insurance vs. Scope Metals Group | Libra Insurance vs. Computer Direct | Libra Insurance vs. Shagrir Group Vehicle | Libra Insurance vs. Victory Supermarket Chain |
| Bio View vs. Libra Insurance | Bio View vs. Sure Tech Investments LP | Bio View vs. Azorim Investment Development | Bio View vs. Polyram Plastic Industries |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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