Correlation Between Manaksia Steels and Life Insurance
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By analyzing existing cross correlation between Manaksia Steels Limited and Life Insurance, you can compare the effects of market volatilities on Manaksia Steels and Life 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 Manaksia Steels with a short position of Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manaksia Steels and Life Insurance.
Diversification Opportunities for Manaksia Steels and Life Insurance
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manaksia and Life is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Manaksia Steels Limited and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance and Manaksia Steels 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 Manaksia Steels Limited are associated (or correlated) with Life Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Insurance has no effect on the direction of Manaksia Steels i.e., Manaksia Steels and Life Insurance go up and down completely randomly.
Pair Corralation between Manaksia Steels and Life Insurance
Assuming the 90 days trading horizon Manaksia Steels Limited is expected to generate 1.64 times more return on investment than Life Insurance. However, Manaksia Steels is 1.64 times more volatile than Life Insurance. It trades about 0.03 of its potential returns per unit of risk. Life Insurance is currently generating about 0.04 per unit of risk. If you would invest 4,405 in Manaksia Steels Limited on October 30, 2024 and sell it today you would earn a total of 1,148 from holding Manaksia Steels Limited or generate 26.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Manaksia Steels Limited vs. Life Insurance
Performance |
| Timeline |
| Manaksia Steels |
| Life Insurance |
Manaksia Steels and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manaksia Steels and Life Insurance
The main advantage of trading using opposite Manaksia Steels and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manaksia Steels position performs unexpectedly, Life 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 Life Insurance will offset losses from the drop in Life Insurance's long position.| Manaksia Steels vs. Bodhi Tree Multimedia | Manaksia Steels vs. Touchwood Entertainment Limited | Manaksia Steels vs. Hisar Metal Industries | Manaksia Steels vs. Music Broadcast Limited |
| Life Insurance vs. Som Distilleries Breweries | Life Insurance vs. Future Retail Limited | Life Insurance vs. DCB Bank Limited | Life Insurance vs. UCO Bank |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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