Correlation Between Colas SA and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both Colas SA and Selective 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 Colas SA and Selective Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colas SA and Selective Insurance Group, you can compare the effects of market volatilities on Colas SA and Selective 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 Colas SA with a short position of Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colas SA and Selective Insurance.
Diversification Opportunities for Colas SA and Selective Insurance
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Colas and Selective is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Colas SA and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance and Colas SA 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 Colas SA are associated (or correlated) with Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of Colas SA i.e., Colas SA and Selective Insurance go up and down completely randomly.
Pair Corralation between Colas SA and Selective Insurance
If you would invest 10,368 in Selective Insurance Group on January 25, 2024 and sell it today you would earn a total of 2.00 from holding Selective Insurance Group or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Colas SA vs. Selective Insurance Group
Performance |
| Timeline |
| Colas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Selective Insurance |
Colas SA and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colas SA and Selective Insurance
The main advantage of trading using opposite Colas SA and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colas SA position performs unexpectedly, Selective 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 Selective Insurance will offset losses from the drop in Selective Insurance's long position.| Colas SA vs. Reinsurance Group of | Colas SA vs. Siriuspoint | Colas SA vs. Brookfield Reinsurance | Colas SA vs. RenaissanceRe Holdings |
| Selective Insurance vs. Aquagold International | Selective Insurance vs. Thrivent High Yield | Selective Insurance vs. Morningstar Unconstrained Allocation | Selective Insurance vs. Via Renewables |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |