Correlation Between Reinsurance Group and KEPPEL CORP
Can any of the company-specific risk be diversified away by investing in both Reinsurance Group and KEPPEL CORP 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 Reinsurance Group and KEPPEL CORP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reinsurance Group of and KEPPEL P , you can compare the effects of market volatilities on Reinsurance Group and KEPPEL CORP 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 Reinsurance Group with a short position of KEPPEL CORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reinsurance Group and KEPPEL CORP.
Diversification Opportunities for Reinsurance Group and KEPPEL CORP
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Reinsurance and KEPPEL is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Reinsurance Group of and KEPPEL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEPPEL CORP and Reinsurance Group 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 Reinsurance Group of are associated (or correlated) with KEPPEL CORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEPPEL CORP has no effect on the direction of Reinsurance Group i.e., Reinsurance Group and KEPPEL CORP go up and down completely randomly.
Pair Corralation between Reinsurance Group and KEPPEL CORP
Assuming the 90 days trading horizon Reinsurance Group of is expected to generate 1.3 times more return on investment than KEPPEL CORP. However, Reinsurance Group is 1.3 times more volatile than KEPPEL P . It trades about 0.07 of its potential returns per unit of risk. KEPPEL P is currently generating about 0.08 per unit of risk. If you would invest 12,736 in Reinsurance Group of on September 2, 2024 and sell it today you would earn a total of 8,864 from holding Reinsurance Group of or generate 69.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reinsurance Group of vs. KEPPEL P
Performance |
| Timeline |
| Reinsurance Group |
| KEPPEL CORP |
Reinsurance Group and KEPPEL CORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reinsurance Group and KEPPEL CORP
The main advantage of trading using opposite Reinsurance Group and KEPPEL CORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reinsurance Group position performs unexpectedly, KEPPEL CORP 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 KEPPEL CORP will offset losses from the drop in KEPPEL CORP's long position.| Reinsurance Group vs. Superior Plus Corp | Reinsurance Group vs. Origin Agritech | Reinsurance Group vs. Identiv | Reinsurance Group vs. INTUITIVE SURGICAL |
| KEPPEL CORP vs. QBE Insurance Group | KEPPEL CORP vs. Avanos Medical | KEPPEL CORP vs. Reinsurance Group of | KEPPEL CORP vs. Selective Insurance Group |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| 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 | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |