Correlation Between Selective Insurance and ALTAIR RES
Can any of the company-specific risk be diversified away by investing in both Selective Insurance and ALTAIR RES 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 Selective Insurance and ALTAIR RES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selective Insurance Group and ALTAIR RES INC, you can compare the effects of market volatilities on Selective Insurance and ALTAIR RES 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 Selective Insurance with a short position of ALTAIR RES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selective Insurance and ALTAIR RES.
Diversification Opportunities for Selective Insurance and ALTAIR RES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Selective and ALTAIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Selective Insurance Group and ALTAIR RES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTAIR RES INC and Selective 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 Selective Insurance Group are associated (or correlated) with ALTAIR RES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTAIR RES INC has no effect on the direction of Selective Insurance i.e., Selective Insurance and ALTAIR RES go up and down completely randomly.
Pair Corralation between Selective Insurance and ALTAIR RES
If you would invest 8,416 in Selective Insurance Group on August 29, 2024 and sell it today you would earn a total of 734.00 from holding Selective Insurance Group or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Selective Insurance Group vs. ALTAIR RES INC
Performance |
| Timeline |
| Selective Insurance |
| ALTAIR RES INC |
Selective Insurance and ALTAIR RES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selective Insurance and ALTAIR RES
The main advantage of trading using opposite Selective Insurance and ALTAIR RES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selective Insurance position performs unexpectedly, ALTAIR RES 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 ALTAIR RES will offset losses from the drop in ALTAIR RES's long position.| Selective Insurance vs. PICC Property and | Selective Insurance vs. QBE Insurance Group | Selective Insurance vs. Superior Plus Corp | Selective Insurance vs. SIVERS SEMICONDUCTORS AB |
| ALTAIR RES vs. NORWEGIAN AIR SHUT | ALTAIR RES vs. Corsair Gaming | ALTAIR RES vs. MYFAIR GOLD P | ALTAIR RES vs. Alaska Air 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |