Correlation Between 49803XAA1 and Direct Line
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By analyzing existing cross correlation between KITE RLTY GROUP and Direct Line Insurance, you can compare the effects of market volatilities on 49803XAA1 and Direct Line 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 49803XAA1 with a short position of Direct Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of 49803XAA1 and Direct Line.
Diversification Opportunities for 49803XAA1 and Direct Line
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 49803XAA1 and Direct is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding KITE RLTY GROUP and Direct Line Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direct Line Insurance and 49803XAA1 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 KITE RLTY GROUP are associated (or correlated) with Direct Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direct Line Insurance has no effect on the direction of 49803XAA1 i.e., 49803XAA1 and Direct Line go up and down completely randomly.
Pair Corralation between 49803XAA1 and Direct Line
Assuming the 90 days trading horizon 49803XAA1 is expected to generate 45.71 times less return on investment than Direct Line. But when comparing it to its historical volatility, KITE RLTY GROUP is 3.62 times less risky than Direct Line. It trades about 0.0 of its potential returns per unit of risk. Direct Line Insurance is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 787.00 in Direct Line Insurance on September 12, 2024 and sell it today you would earn a total of 466.00 from holding Direct Line Insurance or generate 59.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.74% |
| Values | Daily Returns |
KITE RLTY GROUP vs. Direct Line Insurance
Performance |
| Timeline |
| KITE RLTY GROUP |
| Direct Line Insurance |
49803XAA1 and Direct Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 49803XAA1 and Direct Line
The main advantage of trading using opposite 49803XAA1 and Direct Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49803XAA1 position performs unexpectedly, Direct Line 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 Direct Line will offset losses from the drop in Direct Line's long position.| 49803XAA1 vs. Yuexiu Transport Infrastructure | 49803XAA1 vs. Mesa Air Group | 49803XAA1 vs. Summit Materials | 49803XAA1 vs. Harmony Gold Mining |
| Direct Line vs. Berkshire Hathaway | Direct Line vs. Berkshire Hathaway | Direct Line vs. Zurich Insurance Group | Direct Line vs. Zurich Insurance 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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