Correlation Between Safety Insurance and Speedway Motorsports
Can any of the company-specific risk be diversified away by investing in both Safety Insurance and Speedway Motorsports 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 Speedway Motorsports 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 Speedway Motorsports, you can compare the effects of market volatilities on Safety Insurance and Speedway Motorsports 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 Speedway Motorsports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safety Insurance and Speedway Motorsports.
Diversification Opportunities for Safety Insurance and Speedway Motorsports
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Safety and Speedway is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Safety Insurance Group and Speedway Motorsports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speedway Motorsports 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 Speedway Motorsports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speedway Motorsports has no effect on the direction of Safety Insurance i.e., Safety Insurance and Speedway Motorsports go up and down completely randomly.
Pair Corralation between Safety Insurance and Speedway Motorsports
If you would invest 7,168 in Safety Insurance Group on September 12, 2024 and sell it today you would earn a total of 932.00 from holding Safety Insurance Group or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Safety Insurance Group vs. Speedway Motorsports
Performance |
| Timeline |
| Safety Insurance |
| Speedway Motorsports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Safety Insurance and Speedway Motorsports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safety Insurance and Speedway Motorsports
The main advantage of trading using opposite Safety Insurance and Speedway Motorsports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safety Insurance position performs unexpectedly, Speedway Motorsports 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 Speedway Motorsports will offset losses from the drop in Speedway Motorsports' long position.| Safety Insurance vs. QBE Insurance Group | Safety Insurance vs. Insurance Australia Group | Safety Insurance vs. Superior Plus Corp | Safety Insurance vs. SIVERS SEMICONDUCTORS AB |
| Speedway Motorsports vs. NISSAN CHEMICAL IND | Speedway Motorsports vs. PTT Global Chemical | Speedway Motorsports vs. Waste Management | Speedway Motorsports vs. Sims Metal Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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