Correlation Between Safety Insurance and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both Safety Insurance and MAVEN WIRELESS 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 Safety Insurance and MAVEN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safety Insurance Group and MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on Safety Insurance and MAVEN WIRELESS 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 Safety Insurance with a short position of MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safety Insurance and MAVEN WIRELESS.
Diversification Opportunities for Safety Insurance and MAVEN WIRELESS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safety and MAVEN is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Safety Insurance Group and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN and Safety 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 Safety Insurance Group are associated (or correlated) with MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of Safety Insurance i.e., Safety Insurance and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between Safety Insurance and MAVEN WIRELESS
Assuming the 90 days horizon Safety Insurance Group is expected to generate 0.82 times more return on investment than MAVEN WIRELESS. However, Safety Insurance Group is 1.22 times less risky than MAVEN WIRELESS. It trades about 0.33 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about -0.2 per unit of risk. If you would invest 7,200 in Safety Insurance Group on August 31, 2024 and sell it today you would earn a total of 950.00 from holding Safety Insurance Group or generate 13.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safety Insurance Group vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| Safety Insurance |
| MAVEN WIRELESS SWEDEN |
Safety Insurance and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safety Insurance and MAVEN WIRELESS
The main advantage of trading using opposite Safety Insurance and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safety Insurance position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| Safety Insurance vs. Chuangs China Investments | Safety Insurance vs. UNIVERSAL MUSIC GROUP | Safety Insurance vs. Gladstone Investment | Safety Insurance vs. BURLINGTON STORES |
| MAVEN WIRELESS vs. T Mobile | MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. Deutsche Telekom AG | MAVEN WIRELESS vs. Superior Plus Corp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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