Correlation Between AFRICAN ALLIANCE and AIICO INSURANCE
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By analyzing existing cross correlation between AFRICAN ALLIANCE INSURANCE and AIICO INSURANCE PLC, you can compare the effects of market volatilities on AFRICAN ALLIANCE and AIICO 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 AFRICAN ALLIANCE with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFRICAN ALLIANCE and AIICO INSURANCE.
Diversification Opportunities for AFRICAN ALLIANCE and AIICO INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFRICAN and AIICO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFRICAN ALLIANCE INSURANCE and AIICO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIICO INSURANCE PLC and AFRICAN ALLIANCE 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 AFRICAN ALLIANCE INSURANCE are associated (or correlated) with AIICO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIICO INSURANCE PLC has no effect on the direction of AFRICAN ALLIANCE i.e., AFRICAN ALLIANCE and AIICO INSURANCE go up and down completely randomly.
Pair Corralation between AFRICAN ALLIANCE and AIICO INSURANCE
If you would invest 59.00 in AIICO INSURANCE PLC on November 5, 2024 and sell it today you would earn a total of 103.00 from holding AIICO INSURANCE PLC or generate 174.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
AFRICAN ALLIANCE INSURANCE vs. AIICO INSURANCE PLC
Performance |
| Timeline |
| AFRICAN ALLIANCE INS |
| AIICO INSURANCE PLC |
AFRICAN ALLIANCE and AIICO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFRICAN ALLIANCE and AIICO INSURANCE
The main advantage of trading using opposite AFRICAN ALLIANCE and AIICO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFRICAN ALLIANCE position performs unexpectedly, AIICO 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 AIICO INSURANCE will offset losses from the drop in AIICO INSURANCE's long position.| AFRICAN ALLIANCE vs. ECOBANK TRANSNATIONAL INCORPORATED | AFRICAN ALLIANCE vs. CUSTODIAN INVESTMENT PLC | AFRICAN ALLIANCE vs. NEM INSURANCE PLC | AFRICAN ALLIANCE vs. DN TYRE RUBBER |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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