Correlation Between WILLIS LEASE and SBI Insurance
Can any of the company-specific risk be diversified away by investing in both WILLIS LEASE and SBI 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 WILLIS LEASE and SBI Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WILLIS LEASE FIN and SBI Insurance Group, you can compare the effects of market volatilities on WILLIS LEASE and SBI 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 WILLIS LEASE with a short position of SBI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of WILLIS LEASE and SBI Insurance.
Diversification Opportunities for WILLIS LEASE and SBI Insurance
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WILLIS and SBI is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding WILLIS LEASE FIN and SBI Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Insurance Group and WILLIS LEASE 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 WILLIS LEASE FIN are associated (or correlated) with SBI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Insurance Group has no effect on the direction of WILLIS LEASE i.e., WILLIS LEASE and SBI Insurance go up and down completely randomly.
Pair Corralation between WILLIS LEASE and SBI Insurance
Assuming the 90 days horizon WILLIS LEASE FIN is expected to under-perform the SBI Insurance. In addition to that, WILLIS LEASE is 1.02 times more volatile than SBI Insurance Group. It trades about -0.07 of its total potential returns per unit of risk. SBI Insurance Group is currently generating about 0.21 per unit of volatility. If you would invest 645.00 in SBI Insurance Group on November 28, 2024 and sell it today you would earn a total of 60.00 from holding SBI Insurance Group or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
WILLIS LEASE FIN vs. SBI Insurance Group
Performance |
| Timeline |
| WILLIS LEASE FIN |
| SBI Insurance Group |
WILLIS LEASE and SBI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WILLIS LEASE and SBI Insurance
The main advantage of trading using opposite WILLIS LEASE and SBI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WILLIS LEASE position performs unexpectedly, SBI 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 SBI Insurance will offset losses from the drop in SBI Insurance's long position.| WILLIS LEASE vs. Marie Brizard Wine | WILLIS LEASE vs. CREDIT AGRICOLE | WILLIS LEASE vs. Chiba Bank | WILLIS LEASE vs. Cembra Money Bank |
| SBI Insurance vs. COREBRIDGE FINANCIAL INC | SBI Insurance vs. PRINCIPAL FINANCIAL | SBI Insurance vs. BANK OCHINA H | SBI Insurance vs. GAZTRTECHNIUADR15EO01 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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