Correlation Between AIICO INSURANCE and INTERNATIONAL ENERGY
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By analyzing existing cross correlation between AIICO INSURANCE PLC and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on AIICO INSURANCE and INTERNATIONAL ENERGY 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 AIICO INSURANCE with a short position of INTERNATIONAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIICO INSURANCE and INTERNATIONAL ENERGY.
Diversification Opportunities for AIICO INSURANCE and INTERNATIONAL ENERGY
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AIICO and INTERNATIONAL is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AIICO INSURANCE PLC and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY and AIICO 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 AIICO INSURANCE PLC are associated (or correlated) with INTERNATIONAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of AIICO INSURANCE i.e., AIICO INSURANCE and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between AIICO INSURANCE and INTERNATIONAL ENERGY
Assuming the 90 days trading horizon AIICO INSURANCE is expected to generate 2.26 times less return on investment than INTERNATIONAL ENERGY. In addition to that, AIICO INSURANCE is 1.3 times more volatile than INTERNATIONAL ENERGY INSURANCE. It trades about 0.08 of its total potential returns per unit of risk. INTERNATIONAL ENERGY INSURANCE is currently generating about 0.24 per unit of volatility. If you would invest 159.00 in INTERNATIONAL ENERGY INSURANCE on October 23, 2024 and sell it today you would earn a total of 31.00 from holding INTERNATIONAL ENERGY INSURANCE or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIICO INSURANCE PLC vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| AIICO INSURANCE PLC |
| INTERNATIONAL ENERGY |
AIICO INSURANCE and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIICO INSURANCE and INTERNATIONAL ENERGY
The main advantage of trading using opposite AIICO INSURANCE and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIICO INSURANCE position performs unexpectedly, INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY will offset losses from the drop in INTERNATIONAL ENERGY's long position.| AIICO INSURANCE vs. ABC TRANSPORT PLC | AIICO INSURANCE vs. NEM INSURANCE PLC | AIICO INSURANCE vs. GOLDEN GUINEA BREWERIES | AIICO INSURANCE vs. UNITY BANK PLC |
| INTERNATIONAL ENERGY vs. AIICO INSURANCE PLC | INTERNATIONAL ENERGY vs. AXAMANSARD INSURANCE PLC | INTERNATIONAL ENERGY vs. GOLDLINK INSURANCE PLC | INTERNATIONAL ENERGY vs. LIVINGTRUST MORTGAGE BANK |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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