Correlation Between OnMobile Global and Life Insurance
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By analyzing existing cross correlation between OnMobile Global Limited and Life Insurance, you can compare the effects of market volatilities on OnMobile Global 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 OnMobile Global with a short position of Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of OnMobile Global and Life Insurance.
Diversification Opportunities for OnMobile Global and Life Insurance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OnMobile and Life is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding OnMobile Global Limited and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance and OnMobile Global 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 OnMobile Global 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 OnMobile Global i.e., OnMobile Global and Life Insurance go up and down completely randomly.
Pair Corralation between OnMobile Global and Life Insurance
Assuming the 90 days trading horizon OnMobile Global Limited is expected to under-perform the Life Insurance. But the stock apears to be less risky and, when comparing its historical volatility, OnMobile Global Limited is 1.15 times less risky than Life Insurance. The stock trades about -0.03 of its potential returns per unit of risk. The Life Insurance is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 89,665 in Life Insurance on September 21, 2024 and sell it today you would earn a total of 840.00 from holding Life Insurance or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OnMobile Global Limited vs. Life Insurance
Performance |
| Timeline |
| OnMobile Global |
| Life Insurance |
OnMobile Global and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OnMobile Global and Life Insurance
The main advantage of trading using opposite OnMobile Global and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OnMobile Global 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.| OnMobile Global vs. Aster DM Healthcare | OnMobile Global vs. Bajaj Healthcare Limited | OnMobile Global vs. Lotus Eye Hospital | OnMobile Global vs. Newgen Software Technologies |
| Life Insurance vs. Alkali Metals Limited | Life Insurance vs. Shyam Metalics and | Life Insurance vs. Rajnandini Metal Limited | Life Insurance vs. Metalyst Forgings 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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