Correlation Between BNCCorp and InsCorp

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

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

Diversification Opportunities for BNCCorp and InsCorp

0.0

Correlation Coefficient

BNCCorp  InsCorp

Pay attention - limited upside

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

Pair Corralation between BNCCorp and InsCorp

If you would invest  2,339  in InsCorp on May 6, 2025 and sell it today you would earn a total of  147.00  from holding InsCorp or generate 6.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BNCCorp  vs.  InsCorp

BNCCorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days BNCCorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, BNCCorp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

InsCorp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in InsCorp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, InsCorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with BNCCorp and InsCorp

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

The idea behind BNCCorp and InsCorp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.