Correlation Between Poly Medicure and Life Insurance
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By analyzing existing cross correlation between Poly Medicure Limited and Life Insurance, you can compare the effects of market volatilities on Poly Medicure 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 Poly Medicure with a short position of Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Medicure and Life Insurance.
Diversification Opportunities for Poly Medicure and Life Insurance
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Poly and Life is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Poly Medicure Limited and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance and Poly Medicure 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 Poly Medicure 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 Poly Medicure i.e., Poly Medicure and Life Insurance go up and down completely randomly.
Pair Corralation between Poly Medicure and Life Insurance
Assuming the 90 days trading horizon Poly Medicure Limited is expected to generate 1.19 times more return on investment than Life Insurance. However, Poly Medicure is 1.19 times more volatile than Life Insurance. It trades about 0.1 of its potential returns per unit of risk. Life Insurance is currently generating about 0.04 per unit of risk. If you would invest 92,375 in Poly Medicure Limited on August 30, 2024 and sell it today you would earn a total of 176,805 from holding Poly Medicure Limited or generate 191.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Poly Medicure Limited vs. Life Insurance
Performance |
| Timeline |
| Poly Medicure Limited |
| Life Insurance |
Poly Medicure and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Medicure and Life Insurance
The main advantage of trading using opposite Poly Medicure and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Medicure 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.| Poly Medicure vs. Sukhjit Starch Chemicals | Poly Medicure vs. Thirumalai Chemicals Limited | Poly Medicure vs. Golden Tobacco Limited | Poly Medicure vs. Pritish Nandy Communications |
| Life Insurance vs. MRF Limited | Life Insurance vs. Nalwa Sons Investments | Life Insurance 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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