Correlation Between Libra Insurance and Blender Financial
Can any of the company-specific risk be diversified away by investing in both Libra Insurance and Blender Financial 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 Blender Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Libra Insurance and Blender Financial Technologies, you can compare the effects of market volatilities on Libra Insurance and Blender Financial 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 Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Libra Insurance and Blender Financial.
Diversification Opportunities for Libra Insurance and Blender Financial
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Libra and Blender is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Libra Insurance and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial 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 Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of Libra Insurance i.e., Libra Insurance and Blender Financial go up and down completely randomly.
Pair Corralation between Libra Insurance and Blender Financial
Assuming the 90 days trading horizon Libra Insurance is expected to generate 12.02 times more return on investment than Blender Financial. However, Libra Insurance is 12.02 times more volatile than Blender Financial Technologies. It trades about 0.09 of its potential returns per unit of risk. Blender Financial Technologies is currently generating about -0.27 per unit of risk. If you would invest 99,760 in Libra Insurance on November 28, 2024 and sell it today you would earn a total of 4,340 from holding Libra Insurance or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Libra Insurance vs. Blender Financial Technologies
Performance |
| Timeline |
| Libra Insurance |
| Blender Financial |
Libra Insurance and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Libra Insurance and Blender Financial
The main advantage of trading using opposite Libra Insurance and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Libra Insurance position performs unexpectedly, Blender Financial 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 Blender Financial will offset losses from the drop in Blender Financial's long position.| Libra Insurance vs. Global Knafaim Leasing | Libra Insurance vs. Dan Hotels | Libra Insurance vs. G Willi Food International | Libra Insurance vs. Retailors |
| Blender Financial vs. Bezeq Israeli Telecommunication | Blender Financial vs. YD More Investments | Blender Financial vs. Inrom Construction Industries | Blender Financial vs. Analyst IMS Investment |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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