Correlation Between AFROMEDIA PLC and CORONATION INSURANCE
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By analyzing existing cross correlation between AFROMEDIA PLC and CORONATION INSURANCE PLC, you can compare the effects of market volatilities on AFROMEDIA PLC and CORONATION 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 AFROMEDIA PLC with a short position of CORONATION INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFROMEDIA PLC and CORONATION INSURANCE.
Diversification Opportunities for AFROMEDIA PLC and CORONATION INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFROMEDIA and CORONATION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFROMEDIA PLC and CORONATION INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORONATION INSURANCE PLC and AFROMEDIA PLC 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 AFROMEDIA PLC are associated (or correlated) with CORONATION INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORONATION INSURANCE PLC has no effect on the direction of AFROMEDIA PLC i.e., AFROMEDIA PLC and CORONATION INSURANCE go up and down completely randomly.
Pair Corralation between AFROMEDIA PLC and CORONATION INSURANCE
If you would invest 77.00 in CORONATION INSURANCE PLC on August 28, 2024 and sell it today you would earn a total of 28.00 from holding CORONATION INSURANCE PLC or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.51% |
| Values | Daily Returns |
AFROMEDIA PLC vs. CORONATION INSURANCE PLC
Performance |
| Timeline |
| AFROMEDIA PLC |
| CORONATION INSURANCE PLC |
AFROMEDIA PLC and CORONATION INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFROMEDIA PLC and CORONATION INSURANCE
The main advantage of trading using opposite AFROMEDIA PLC and CORONATION INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFROMEDIA PLC position performs unexpectedly, CORONATION 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 CORONATION INSURANCE will offset losses from the drop in CORONATION INSURANCE's long position.| AFROMEDIA PLC vs. ABC TRANSPORT PLC | AFROMEDIA PLC vs. UNITY BANK PLC | AFROMEDIA PLC vs. ZENITH BANK PLC | AFROMEDIA PLC vs. MULTIVERSE MINING AND |
| CORONATION INSURANCE vs. SOVEREIGN TRUST INSURANCE | CORONATION INSURANCE vs. FIDELITY BANK PLC | CORONATION INSURANCE vs. GOLDEN GUINEA BREWERIES | CORONATION INSURANCE vs. CORNERSTONE INSURANCE PLC |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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