Correlation Between Shaheen Insurance and Atlas Insurance
Can any of the company-specific risk be diversified away by investing in both Shaheen Insurance and Atlas 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 Shaheen Insurance and Atlas Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shaheen Insurance and Atlas Insurance, you can compare the effects of market volatilities on Shaheen Insurance and Atlas 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 Shaheen Insurance with a short position of Atlas Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaheen Insurance and Atlas Insurance.
Diversification Opportunities for Shaheen Insurance and Atlas Insurance
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaheen and Atlas is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shaheen Insurance and Atlas Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Insurance and Shaheen 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 Shaheen Insurance are associated (or correlated) with Atlas Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Insurance has no effect on the direction of Shaheen Insurance i.e., Shaheen Insurance and Atlas Insurance go up and down completely randomly.
Pair Corralation between Shaheen Insurance and Atlas Insurance
Assuming the 90 days trading horizon Shaheen Insurance is expected to generate 1.82 times more return on investment than Atlas Insurance. However, Shaheen Insurance is 1.82 times more volatile than Atlas Insurance. It trades about 0.13 of its potential returns per unit of risk. Atlas Insurance is currently generating about 0.14 per unit of risk. If you would invest 501.00 in Shaheen Insurance on November 8, 2024 and sell it today you would earn a total of 121.00 from holding Shaheen Insurance or generate 24.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.16% |
| Values | Daily Returns |
Shaheen Insurance vs. Atlas Insurance
Performance |
| Timeline |
| Shaheen Insurance |
| Atlas Insurance |
Shaheen Insurance and Atlas Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaheen Insurance and Atlas Insurance
The main advantage of trading using opposite Shaheen Insurance and Atlas Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaheen Insurance position performs unexpectedly, Atlas 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 Atlas Insurance will offset losses from the drop in Atlas Insurance's long position.| Shaheen Insurance vs. Allied Bank | Shaheen Insurance vs. Century Insurance | Shaheen Insurance vs. Sitara Chemical Industries | Shaheen Insurance vs. Habib Insurance |
| Atlas Insurance vs. Honda Atlas Cars | Atlas Insurance vs. Shifa International Hospitals | Atlas Insurance vs. JS Investments | Atlas Insurance vs. Universal Insurance |
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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |