Correlation Between MULTIVERSE MINING and AIICO INSURANCE

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

By analyzing existing cross correlation between MULTIVERSE MINING AND and AIICO INSURANCE PLC, you can compare the effects of market volatilities on MULTIVERSE MINING and AIICO 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 MULTIVERSE MINING with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MULTIVERSE MINING and AIICO INSURANCE.

Diversification Opportunities for MULTIVERSE MINING and AIICO INSURANCE

-0.75

Correlation Coefficient

MULTIVERSE MINING  AIICO INSURANCE

Pay attention - limited upside

The 3 months correlation between MULTIVERSE and AIICO is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding MULTIVERSE MINING AND and AIICO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIICO INSURANCE PLC and MULTIVERSE MINING 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 MULTIVERSE MINING AND are associated (or correlated) with AIICO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIICO INSURANCE PLC has no effect on the direction of MULTIVERSE MINING i.e., MULTIVERSE MINING and AIICO INSURANCE go up and down completely randomly.

Pair Corralation between MULTIVERSE MINING and AIICO INSURANCE

Assuming the 90 days trading horizon MULTIVERSE MINING AND is expected to under-perform the AIICO INSURANCE. In addition to that, MULTIVERSE MINING is 1.42 times more volatile than AIICO INSURANCE PLC. It trades about -0.34 of its total potential returns per unit of risk. AIICO INSURANCE PLC is currently generating about 0.1 per unit of volatility. If you would invest  110.00  in AIICO INSURANCE PLC on September 14, 2024 and sell it today you would earn a total of  14.00  from holding AIICO INSURANCE PLC or generate 12.73% return on investment over 90 days.

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

MULTIVERSE MINING AND  vs.  AIICO INSURANCE PLC

MULTIVERSE MINING AND

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MULTIVERSE MINING AND has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

AIICO INSURANCE PLC

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AIICO INSURANCE PLC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent fundamental indicators, AIICO INSURANCE showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MULTIVERSE MINING and AIICO INSURANCE

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

The idea behind MULTIVERSE MINING AND and AIICO INSURANCE PLC 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.