Correlation Between NetSol Technologies and IGI Life
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By analyzing existing cross correlation between NetSol Technologies and IGI Life Insurance, you can compare the effects of market volatilities on NetSol Technologies and IGI Life 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 NetSol Technologies with a short position of IGI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetSol Technologies and IGI Life.
Diversification Opportunities for NetSol Technologies and IGI Life
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NetSol and IGI is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding NetSol Technologies and IGI Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGI Life Insurance and NetSol Technologies 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 NetSol Technologies are associated (or correlated) with IGI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGI Life Insurance has no effect on the direction of NetSol Technologies i.e., NetSol Technologies and IGI Life go up and down completely randomly.
Pair Corralation between NetSol Technologies and IGI Life
Assuming the 90 days trading horizon NetSol Technologies is expected to under-perform the IGI Life. But the stock apears to be less risky and, when comparing its historical volatility, NetSol Technologies is 1.83 times less risky than IGI Life. The stock trades about -0.02 of its potential returns per unit of risk. The IGI Life Insurance is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,549 in IGI Life Insurance on November 7, 2024 and sell it today you would lose (22.00) from holding IGI Life Insurance or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
NetSol Technologies vs. IGI Life Insurance
Performance |
| Timeline |
| NetSol Technologies |
| IGI Life Insurance |
NetSol Technologies and IGI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NetSol Technologies and IGI Life
The main advantage of trading using opposite NetSol Technologies and IGI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetSol Technologies position performs unexpectedly, IGI Life 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 IGI Life will offset losses from the drop in IGI Life's long position.| NetSol Technologies vs. K Electric | NetSol Technologies vs. Lucky Cement | NetSol Technologies vs. Hub Power | NetSol Technologies vs. Pakistan Telecommunication |
| IGI Life vs. Agha Steel Industries | IGI Life vs. Honda Atlas Cars | IGI Life vs. Metropolitan Steel Corp | IGI Life vs. National Foods |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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