Correlation Between Neptune Insurance and Life Insurance
Can any of the company-specific risk be diversified away by investing in both Neptune Insurance and Life 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 Neptune Insurance and Life Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neptune Insurance Holdings and Life Insurance, you can compare the effects of market volatilities on Neptune Insurance and Life 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 Neptune Insurance with a short position of Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neptune Insurance and Life Insurance.
Diversification Opportunities for Neptune Insurance and Life Insurance
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neptune and Life is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Neptune Insurance Holdings and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance and Neptune 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 Neptune Insurance Holdings are associated (or correlated) with Life Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Insurance has no effect on the direction of Neptune Insurance i.e., Neptune Insurance and Life Insurance go up and down completely randomly.
Pair Corralation between Neptune Insurance and Life Insurance
Allowing for the 90-day total investment horizon Neptune Insurance Holdings is expected to generate 1.36 times more return on investment than Life Insurance. However, Neptune Insurance is 1.36 times more volatile than Life Insurance. It trades about 0.06 of its potential returns per unit of risk. Life Insurance is currently generating about 0.07 per unit of risk. If you would invest 2,480 in Neptune Insurance Holdings on September 10, 2025 and sell it today you would earn a total of 190.00 from holding Neptune Insurance Holdings or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.56% |
| Values | Daily Returns |
Neptune Insurance Holdings vs. Life Insurance
Performance |
| Timeline |
| Neptune Insurance |
| Life Insurance |
Neptune Insurance and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neptune Insurance and Life Insurance
The main advantage of trading using opposite Neptune Insurance and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neptune Insurance position performs unexpectedly, Life 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 Life Insurance will offset losses from the drop in Life Insurance's long position.| Neptune Insurance vs. Sapiens International | Neptune Insurance vs. Alarm Holdings | Neptune Insurance vs. WEBTOON Entertainment Common | Neptune Insurance vs. Diebold Nixdorf, Incorporated |
| Life Insurance vs. Flywheel Advanced Technology | Life Insurance vs. Impac Mortgage Holdings | Life Insurance vs. Strategic Management and | Life Insurance vs. SOL Global Investments |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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