Correlation Between Western Acquisition and Life Insurance
Can any of the company-specific risk be diversified away by investing in both Western Acquisition and Life 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 Western Acquisition and Life Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Acquisition Ventures and Life Insurance, you can compare the effects of market volatilities on Western Acquisition and Life 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 Western Acquisition with a short position of Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and Life Insurance.
Diversification Opportunities for Western Acquisition and Life Insurance
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Life is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance and Western Acquisition 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 Western Acquisition Ventures are associated (or correlated) with Life Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Insurance has no effect on the direction of Western Acquisition i.e., Western Acquisition and Life Insurance go up and down completely randomly.
Pair Corralation between Western Acquisition and Life Insurance
If you would invest 1,090 in Western Acquisition Ventures on October 12, 2024 and sell it today you would earn a total of 130.00 from holding Western Acquisition Ventures or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Acquisition Ventures vs. Life Insurance
Performance |
| Timeline |
| Western Acquisition |
| Life Insurance |
Western Acquisition and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and Life Insurance
The main advantage of trading using opposite Western Acquisition and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition position performs unexpectedly, Life 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 Life Insurance will offset losses from the drop in Life Insurance's long position.The idea behind Western Acquisition Ventures and Life Insurance pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Life Insurance vs. Western Acquisition Ventures | Life Insurance vs. Black Spade Acquisition | Life Insurance vs. United Parks Resorts | Life Insurance vs. Artisan Partners Asset |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |