Correlation Between Grand Investment and Delta Insurance

Can any of the company-specific risk be diversified away by investing in both Grand Investment and Delta 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 Grand Investment and Delta Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grand Investment Capital and Delta Insurance, you can compare the effects of market volatilities on Grand Investment and Delta 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 Grand Investment with a short position of Delta Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Investment and Delta Insurance.

Diversification Opportunities for Grand Investment and Delta Insurance

0.0

Correlation Coefficient

Grand Investment  Delta Insurance

Pay attention - limited upside

The 3 months correlation between Grand and Delta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Investment Capital and Delta Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Insurance and Grand Investment 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 Grand Investment Capital are associated (or correlated) with Delta Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Insurance has no effect on the direction of Grand Investment i.e., Grand Investment and Delta Insurance go up and down completely randomly.

Pair Corralation between Grand Investment and Delta Insurance

If you would invest  946.00  in Grand Investment Capital on December 22, 2024 and sell it today you would earn a total of  290.00  from holding Grand Investment Capital or generate 30.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Grand Investment Capital  vs.  Delta Insurance

Grand Investment Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Grand Investment Capital are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Grand Investment reported solid returns over the last few months and may actually be approaching a breakup point.

Delta Insurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Delta Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Delta Insurance is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Grand Investment and Delta Insurance

The main advantage of trading using opposite Grand Investment and Delta Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Investment position performs unexpectedly, Delta 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 Delta Insurance will offset losses from the drop in Delta Insurance's long position.

The idea behind Grand Investment Capital and Delta 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.

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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.