Reliance Insurance (Pakistan) Market Value
| RICL Stock | 11.58 0.43 3.58% |
| Symbol | Reliance |
Reliance Insurance 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Reliance Insurance's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Reliance Insurance.
| 12/20/2024 |
| 01/19/2025 |
If you would invest 0.00 in Reliance Insurance on December 20, 2024 and sell it all today you would earn a total of 0.00 from holding Reliance Insurance Co or generate 0.0% return on investment in Reliance Insurance over 30 days. Reliance Insurance is related to or competes with Universal Insurance, TPL Insurance, Bawany Air, Jubilee Life, Shaheen Insurance, Pakistan Tobacco, and EFU General. More
Reliance Insurance Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Reliance Insurance's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Reliance Insurance Co upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 4.21 | |||
| Information Ratio | 0.0597 | |||
| Maximum Drawdown | 19.45 | |||
| Value At Risk | (5.33) | |||
| Potential Upside | 8.11 |
Reliance Insurance Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Reliance Insurance's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Reliance Insurance's standard deviation. In reality, there are many statistical measures that can use Reliance Insurance historical prices to predict the future Reliance Insurance's volatility.| Risk Adjusted Performance | 0.0643 | |||
| Jensen Alpha | 0.2568 | |||
| Total Risk Alpha | 0.1554 | |||
| Sortino Ratio | 0.0533 | |||
| Treynor Ratio | (0.37) |
Reliance Insurance Backtested Returns
At this point, Reliance Insurance is somewhat reliable. Reliance Insurance maintains Sharpe Ratio (i.e., Efficiency) of 0.0381, which implies the firm had a 0.0381% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Reliance Insurance, which you can use to evaluate the volatility of the company. Please check Reliance Insurance's Risk Adjusted Performance of 0.0643, coefficient of variation of 1479.12, and Semi Deviation of 3.17 to confirm if the risk estimate we provide is consistent with the expected return of 0.14%. Reliance Insurance has a performance score of 3 on a scale of 0 to 100. The company holds a Beta of -0.65, which implies possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Reliance Insurance are expected to decrease at a much lower rate. During the bear market, Reliance Insurance is likely to outperform the market. Reliance Insurance right now holds a risk of 3.63%. Please check Reliance Insurance sortino ratio, maximum drawdown, and the relationship between the total risk alpha and treynor ratio , to decide if Reliance Insurance will be following its historical price patterns.
Auto-correlation | 0.35 |
Below average predictability
Reliance Insurance Co has below average predictability. Overlapping area represents the amount of predictability between Reliance Insurance time series from 20th of December 2024 to 4th of January 2025 and 4th of January 2025 to 19th of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Reliance Insurance price movement. The serial correlation of 0.35 indicates that nearly 35.0% of current Reliance Insurance price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.35 | |
| Spearman Rank Test | -0.38 | |
| Residual Average | 0.0 | |
| Price Variance | 0.06 |
Reliance Insurance lagged returns against current returns
Autocorrelation, which is Reliance Insurance stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Reliance Insurance's stock expected returns. We can calculate the autocorrelation of Reliance Insurance returns to help us make a trade decision. For example, suppose you find that Reliance Insurance has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Reliance Insurance regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Reliance Insurance stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Reliance Insurance stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Reliance Insurance stock over time.
Current vs Lagged Prices |
| Timeline |
Reliance Insurance Lagged Returns
When evaluating Reliance Insurance's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Reliance Insurance stock have on its future price. Reliance Insurance autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Reliance Insurance autocorrelation shows the relationship between Reliance Insurance stock current value and its past values and can show if there is a momentum factor associated with investing in Reliance Insurance Co.
Regressed Prices |
| Timeline |
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
| 0.64 | FFL | Fauji Foods | PairCorr |
| 0.77 | KSBP | KSB Pumps | PairCorr |
| 0.66 | MARI | Mari Petroleum | PairCorr |
| 0.79 | LOADS | Loads | PairCorr |
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.