Reliance Insurance Co Stock Beneish M Score
| RICL Stock | 11.52 0.48 4.00% |
Reliance |
At this time, Reliance Insurance's M Score is inapplicable. The earnings manipulation may begin if Reliance Insurance's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Reliance Insurance executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Reliance Insurance's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-4.84
Beneish M Score - Inapplicable
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About Reliance Insurance Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Reliance Insurance Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Reliance Insurance using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Reliance Insurance Co based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Reliance Insurance
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Reliance Insurance position performs unexpectedly, the other equity 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 Reliance Insurance will appreciate offsetting losses from the drop in the long position's value.Moving together with Reliance Stock
Moving against Reliance Stock
The ability to find closely correlated positions to Reliance Insurance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Reliance Insurance when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Reliance Insurance - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Reliance Insurance Co to buy it.
The correlation of Reliance Insurance is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Reliance Insurance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Reliance Insurance moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Reliance Insurance can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Reliance Stock
Reliance Insurance financial ratios help investors to determine whether Reliance Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Reliance with respect to the benefits of owning Reliance Insurance security.