Correlation Between PICC Property and Safety Insurance
Can any of the company-specific risk be diversified away by investing in both PICC Property and Safety Insurance 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 PICC Property and Safety Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICC Property and and Safety Insurance Group, you can compare the effects of market volatilities on PICC Property and Safety 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 PICC Property with a short position of Safety Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICC Property and Safety Insurance.
Diversification Opportunities for PICC Property and Safety Insurance
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PICC and Safety is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and and Safety Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safety Insurance and PICC Property 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 PICC Property and are associated (or correlated) with Safety Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safety Insurance has no effect on the direction of PICC Property i.e., PICC Property and Safety Insurance go up and down completely randomly.
Pair Corralation between PICC Property and Safety Insurance
Assuming the 90 days horizon PICC Property and is expected to generate 0.72 times more return on investment than Safety Insurance. However, PICC Property and is 1.38 times less risky than Safety Insurance. It trades about 0.22 of its potential returns per unit of risk. Safety Insurance Group is currently generating about 0.05 per unit of risk. If you would invest 152.00 in PICC Property and on November 27, 2024 and sell it today you would earn a total of 8.00 from holding PICC Property and or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICC Property and vs. Safety Insurance Group
Performance |
| Timeline |
| PICC Property |
| Safety Insurance |
PICC Property and Safety Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICC Property and Safety Insurance
The main advantage of trading using opposite PICC Property and Safety Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICC Property position performs unexpectedly, Safety 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 Safety Insurance will offset losses from the drop in Safety Insurance's long position.| PICC Property vs. MCEWEN MINING INC | PICC Property vs. RCI Hospitality Holdings | PICC Property vs. Planet Fitness | PICC Property vs. NIGHTINGALE HEALTH EO |
| Safety Insurance vs. The Progressive | Safety Insurance vs. The Allstate | Safety Insurance vs. PICC Property and | Safety Insurance vs. Cincinnati Financial |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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