Correlation Between Sportking India and General Insurance
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By analyzing existing cross correlation between Sportking India Limited and General Insurance, you can compare the effects of market volatilities on Sportking India and General 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 Sportking India with a short position of General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportking India and General Insurance.
Diversification Opportunities for Sportking India and General Insurance
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sportking and General is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sportking India Limited and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance and Sportking India 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 Sportking India Limited are associated (or correlated) with General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of Sportking India i.e., Sportking India and General Insurance go up and down completely randomly.
Pair Corralation between Sportking India and General Insurance
Assuming the 90 days trading horizon Sportking India Limited is expected to under-perform the General Insurance. In addition to that, Sportking India is 1.0 times more volatile than General Insurance. It trades about -0.12 of its total potential returns per unit of risk. General Insurance is currently generating about -0.06 per unit of volatility. If you would invest 43,505 in General Insurance on November 7, 2024 and sell it today you would lose (2,360) from holding General Insurance or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sportking India Limited vs. General Insurance
Performance |
| Timeline |
| Sportking India |
| General Insurance |
Sportking India and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportking India and General Insurance
The main advantage of trading using opposite Sportking India and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportking India position performs unexpectedly, General 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 General Insurance will offset losses from the drop in General Insurance's long position.| Sportking India vs. Agro Tech Foods | Sportking India vs. Styrenix Performance Materials | Sportking India vs. Vidhi Specialty Food | Sportking India vs. Vinati Organics Limited |
| General Insurance vs. Hindcon Chemicals Limited | General Insurance vs. V2 Retail Limited | General Insurance vs. Praxis Home Retail | General Insurance vs. DMCC SPECIALITY CHEMICALS |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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