Correlation Between Man Infraconstructio and General Insuranceof
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By analyzing existing cross correlation between Man Infraconstruction Limited and General Insurance, you can compare the effects of market volatilities on Man Infraconstructio and General Insuranceof 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 Man Infraconstructio with a short position of General Insuranceof. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Infraconstructio and General Insuranceof.
Diversification Opportunities for Man Infraconstructio and General Insuranceof
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Man and General is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Man Infraconstruction Limited and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insuranceof and Man Infraconstructio 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 Man Infraconstruction Limited are associated (or correlated) with General Insuranceof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insuranceof has no effect on the direction of Man Infraconstructio i.e., Man Infraconstructio and General Insuranceof go up and down completely randomly.
Pair Corralation between Man Infraconstructio and General Insuranceof
Assuming the 90 days trading horizon Man Infraconstructio is expected to generate 1.09 times less return on investment than General Insuranceof. In addition to that, Man Infraconstructio is 1.17 times more volatile than General Insurance. It trades about 0.14 of its total potential returns per unit of risk. General Insurance is currently generating about 0.18 per unit of volatility. If you would invest 36,460 in General Insurance on August 30, 2024 and sell it today you would earn a total of 3,130 from holding General Insurance or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Man Infraconstruction Limited vs. General Insurance
Performance |
| Timeline |
| Man Infraconstruction |
| General Insuranceof |
Man Infraconstructio and General Insuranceof Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Man Infraconstructio and General Insuranceof
The main advantage of trading using opposite Man Infraconstructio and General Insuranceof positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Man Infraconstructio position performs unexpectedly, General Insuranceof 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 General Insuranceof will offset losses from the drop in General Insuranceof's long position.| Man Infraconstructio vs. Reliance Industries Limited | Man Infraconstructio vs. State Bank of | Man Infraconstructio vs. HDFC Bank Limited | Man Infraconstructio vs. Oil Natural Gas |
| General Insuranceof vs. MRF Limited | General Insuranceof vs. Nalwa Sons Investments | General Insuranceof vs. Vardhman Holdings 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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