Correlation Between Navakij Insurance and AIM Industrial
Can any of the company-specific risk be diversified away by investing in both Navakij Insurance and AIM Industrial 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 Navakij Insurance and AIM Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Navakij Insurance and AIM Industrial Growth, you can compare the effects of market volatilities on Navakij Insurance and AIM Industrial 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 Navakij Insurance with a short position of AIM Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navakij Insurance and AIM Industrial.
Diversification Opportunities for Navakij Insurance and AIM Industrial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Navakij and AIM is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding The Navakij Insurance and AIM Industrial Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM Industrial Growth and Navakij 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 The Navakij Insurance are associated (or correlated) with AIM Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM Industrial Growth has no effect on the direction of Navakij Insurance i.e., Navakij Insurance and AIM Industrial go up and down completely randomly.
Pair Corralation between Navakij Insurance and AIM Industrial
Assuming the 90 days trading horizon The Navakij Insurance is expected to generate 65.42 times more return on investment than AIM Industrial. However, Navakij Insurance is 65.42 times more volatile than AIM Industrial Growth. It trades about 0.06 of its potential returns per unit of risk. AIM Industrial Growth is currently generating about 0.02 per unit of risk. If you would invest 2,650 in The Navakij Insurance on September 14, 2024 and sell it today you would lose (160.00) from holding The Navakij Insurance or give up 6.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Navakij Insurance vs. AIM Industrial Growth
Performance |
| Timeline |
| Navakij Insurance |
| AIM Industrial Growth |
Navakij Insurance and AIM Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navakij Insurance and AIM Industrial
The main advantage of trading using opposite Navakij Insurance and AIM Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navakij Insurance position performs unexpectedly, AIM Industrial 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 AIM Industrial will offset losses from the drop in AIM Industrial's long position.| Navakij Insurance vs. Ocean Glass Public | Navakij Insurance vs. Pan Asia Footwear | Navakij Insurance vs. Nonthavej Hospital Public | Navakij Insurance vs. Newcity Public |
| AIM Industrial vs. Amata Summit Growth | AIM Industrial vs. WHA Premium Growth | AIM Industrial vs. Digital Telecommunications Infrastructure | AIM Industrial vs. Quality Houses Property |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |