Correlation Between Reliance Global and Selectquote

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

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

Diversification Opportunities for Reliance Global and Selectquote

-0.07

Correlation Coefficient

Reliance Global  Selectquote

Good diversification

The 3 months correlation between Reliance and Selectquote is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Reliance Global Group and Selectquote in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selectquote and Reliance Global 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 Reliance Global Group are associated (or correlated) with Selectquote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selectquote has no effect on the direction of Reliance Global i.e., Reliance Global and Selectquote go up and down completely randomly.

Pair Corralation between Reliance Global and Selectquote

Given the investment horizon of 90 days Reliance Global Group is expected to generate 3.95 times more return on investment than Selectquote. However, Reliance Global is 3.95 times more volatile than Selectquote. It trades about 0.04 of its potential returns per unit of risk. Selectquote is currently generating about -0.15 per unit of risk. If you would invest  115.00  in Reliance Global Group on May 5, 2025 and sell it today you would lose (10.00) from holding Reliance Global Group or give up 8.7% of portfolio value over 90 days.

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

Reliance Global Group  vs.  Selectquote

Reliance Global Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Reliance Global Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Reliance Global demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Selectquote

Risk-Adjusted Performance

Very Weak

Over the last 90 days Selectquote 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 comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Reliance Global and Selectquote

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

The idea behind Reliance Global Group and Selectquote 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.