Correlation Between INSURANCE AUST and GRENKELEASING

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

By analyzing existing cross correlation between INSURANCE AUST GRP and GRENKELEASING Dusseldorf, you can compare the effects of market volatilities on INSURANCE AUST and GRENKELEASING 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 INSURANCE AUST with a short position of GRENKELEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of INSURANCE AUST and GRENKELEASING.

Diversification Opportunities for INSURANCE AUST and GRENKELEASING

-0.78

Correlation Coefficient

INSURANCE AUST  GRENKELEASING

Pay attention - limited upside

The 3 months correlation between INSURANCE and GRENKELEASING is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding INSURANCE AUST GRP and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Duss and INSURANCE AUST 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 INSURANCE AUST GRP are associated (or correlated) with GRENKELEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Duss has no effect on the direction of INSURANCE AUST i.e., INSURANCE AUST and GRENKELEASING go up and down completely randomly.

Pair Corralation between INSURANCE AUST and GRENKELEASING

Assuming the 90 days trading horizon INSURANCE AUST GRP is expected to under-perform the GRENKELEASING. But the stock apears to be less risky and, when comparing its historical volatility, INSURANCE AUST GRP is 1.14 times less risky than GRENKELEASING. The stock trades about -0.11 of its potential returns per unit of risk. The GRENKELEASING Dusseldorf is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  1,560  in GRENKELEASING Dusseldorf on October 10, 2024 and sell it today you would earn a total of  122.00  from holding GRENKELEASING Dusseldorf or generate 7.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

INSURANCE AUST GRP  vs.  GRENKELEASING Dusseldorf

INSURANCE AUST GRP

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in INSURANCE AUST GRP are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile primary indicators, INSURANCE AUST may actually be approaching a critical reversion point that can send shares even higher in February 2025.

GRENKELEASING Duss

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GRENKELEASING Dusseldorf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward-looking indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with INSURANCE AUST and GRENKELEASING

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

The idea behind INSURANCE AUST GRP and GRENKELEASING Dusseldorf 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.