Correlation Between Navigators and Insurance Australia
Can any of the company-specific risk be diversified away by investing in both Navigators and Insurance Australia 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 Navigators and Insurance Australia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Navigators Group and Insurance Australia Group, you can compare the effects of market volatilities on Navigators and Insurance Australia 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 Navigators with a short position of Insurance Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigators and Insurance Australia.
Diversification Opportunities for Navigators and Insurance Australia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Navigators and Insurance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Navigators Group and Insurance Australia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insurance Australia and Navigators 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 The Navigators Group are associated (or correlated) with Insurance Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insurance Australia has no effect on the direction of Navigators i.e., Navigators and Insurance Australia go up and down completely randomly.
Pair Corralation between Navigators and Insurance Australia
If you would invest (100.00) in Insurance Australia Group on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Insurance Australia Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Navigators Group vs. Insurance Australia Group
Performance |
| Timeline |
| Navigators Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Insurance Australia |
Navigators and Insurance Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navigators and Insurance Australia
The main advantage of trading using opposite Navigators and Insurance Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigators position performs unexpectedly, Insurance Australia 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 Insurance Australia will offset losses from the drop in Insurance Australia's long position.| Navigators vs. Alto Ingredients | Navigators vs. RCS MediaGroup SpA | Navigators vs. Hawkins | Navigators vs. Ubisoft Entertainment |
| Insurance Australia vs. Global Indemnity PLC | Insurance Australia vs. Heritage Insurance Hldgs | Insurance Australia vs. Root Inc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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