Correlation Between Selective Insurance and GRENKELEASING Dusseldorf

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

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

Diversification Opportunities for Selective Insurance and GRENKELEASING Dusseldorf

-0.61

Correlation Coefficient

Selective Insurance  GRENKELEASING Dusseldorf

Excellent diversification

The 3 months correlation between Selective and GRENKELEASING is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Selective Insurance Group and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Dusseldorf and Selective Insurance 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 Selective Insurance Group are associated (or correlated) with GRENKELEASING Dusseldorf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Dusseldorf has no effect on the direction of Selective Insurance i.e., Selective Insurance and GRENKELEASING Dusseldorf go up and down completely randomly.

Pair Corralation between Selective Insurance and GRENKELEASING Dusseldorf

Assuming the 90 days horizon Selective Insurance Group is expected to under-perform the GRENKELEASING Dusseldorf. In addition to that, Selective Insurance is 1.13 times more volatile than GRENKELEASING Dusseldorf. It trades about -0.06 of its total potential returns per unit of risk. GRENKELEASING Dusseldorf is currently generating about 0.2 per unit of volatility. If you would invest  1,340  in GRENKELEASING Dusseldorf on May 5, 2025 and sell it today you would earn a total of  382.00  from holding GRENKELEASING Dusseldorf or generate 28.51% return on investment over 90 days.

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

Selective Insurance Group  vs.  GRENKELEASING Dusseldorf

Selective Insurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Selective Insurance Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

GRENKELEASING Dusseldorf

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GRENKELEASING Dusseldorf are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile forward-looking indicators, GRENKELEASING Dusseldorf unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Selective Insurance and GRENKELEASING Dusseldorf

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

The idea behind Selective Insurance Group and GRENKELEASING Dusseldorf 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.