Correlation Between Life Insurance and Manorama Industries
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By analyzing existing cross correlation between Life Insurance and Manorama Industries Limited, you can compare the effects of market volatilities on Life Insurance and Manorama Industries 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 Life Insurance with a short position of Manorama Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Insurance and Manorama Industries.
Diversification Opportunities for Life Insurance and Manorama Industries
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Life and Manorama is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Life Insurance and Manorama Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manorama Industries and Life 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 Life Insurance are associated (or correlated) with Manorama Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manorama Industries has no effect on the direction of Life Insurance i.e., Life Insurance and Manorama Industries go up and down completely randomly.
Pair Corralation between Life Insurance and Manorama Industries
Assuming the 90 days trading horizon Life Insurance is expected to generate 9.9 times less return on investment than Manorama Industries. But when comparing it to its historical volatility, Life Insurance is 1.5 times less risky than Manorama Industries. It trades about 0.03 of its potential returns per unit of risk. Manorama Industries Limited is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 59,747 in Manorama Industries Limited on September 3, 2024 and sell it today you would earn a total of 57,998 from holding Manorama Industries Limited or generate 97.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Insurance vs. Manorama Industries Limited
Performance |
| Timeline |
| Life Insurance |
| Manorama Industries |
Life Insurance and Manorama Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Insurance and Manorama Industries
The main advantage of trading using opposite Life Insurance and Manorama Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Insurance position performs unexpectedly, Manorama Industries 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 Manorama Industries will offset losses from the drop in Manorama Industries' long position.| Life Insurance vs. Reliance Industries Limited | Life Insurance vs. Shipping | Life Insurance vs. Indo Borax Chemicals | Life Insurance vs. Kingfa Science Technology |
| Manorama Industries vs. Global Education Limited | Manorama Industries vs. Hemisphere Properties India | Manorama Industries vs. Reliance Communications Limited | Manorama Industries vs. Chalet Hotels Limited |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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