Correlation Between Life Insurance and Emkay Global

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

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

Diversification Opportunities for Life Insurance and Emkay Global

0.0

Correlation Coefficient

Life Insurance  Emkay Global

Pay attention - limited upside

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

Pair Corralation between Life Insurance and Emkay Global

If you would invest  0.00  in Emkay Global Financial on October 22, 2024 and sell it today you would earn a total of  0.00  from holding Emkay Global Financial or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Life Insurance  vs.  Emkay Global Financial

Life Insurance

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Life Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Life Insurance is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Emkay Global Financial

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Emkay Global Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward-looking signals, Emkay Global is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Life Insurance and Emkay Global

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

The idea behind Life Insurance and Emkay Global Financial 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.