Correlation Between AIICO INSURANCE and VFD GROUP
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By analyzing existing cross correlation between AIICO INSURANCE PLC and VFD GROUP, you can compare the effects of market volatilities on AIICO INSURANCE and VFD GROUP 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 VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIICO INSURANCE and VFD GROUP.
Diversification Opportunities for AIICO INSURANCE and VFD GROUP
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIICO and VFD is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding AIICO INSURANCE PLC and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP 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 VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of AIICO INSURANCE i.e., AIICO INSURANCE and VFD GROUP go up and down completely randomly.
Pair Corralation between AIICO INSURANCE and VFD GROUP
Assuming the 90 days trading horizon AIICO INSURANCE PLC is expected to generate 0.67 times more return on investment than VFD GROUP. However, AIICO INSURANCE PLC is 1.49 times less risky than VFD GROUP. It trades about 0.07 of its potential returns per unit of risk. VFD GROUP is currently generating about -0.07 per unit of risk. If you would invest 54.00 in AIICO INSURANCE PLC on September 12, 2024 and sell it today you would earn a total of 68.00 from holding AIICO INSURANCE PLC or generate 125.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.49% |
| Values | Daily Returns |
AIICO INSURANCE PLC vs. VFD GROUP
Performance |
| Timeline |
| AIICO INSURANCE PLC |
| VFD GROUP |
AIICO INSURANCE and VFD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIICO INSURANCE and VFD GROUP
The main advantage of trading using opposite AIICO INSURANCE and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIICO INSURANCE position performs unexpectedly, VFD GROUP 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 VFD GROUP will offset losses from the drop in VFD GROUP's long position.| AIICO INSURANCE vs. CORNERSTONE INSURANCE PLC | AIICO INSURANCE vs. MULTI TREX INTEGRATED FOODS | AIICO INSURANCE vs. CHAMPION BREWERIES PLC | AIICO INSURANCE vs. STACO INSURANCE PLC |
| VFD GROUP vs. IKEJA HOTELS PLC | VFD GROUP vs. AIICO INSURANCE PLC | VFD GROUP vs. GOLDLINK INSURANCE PLC | VFD GROUP vs. SOVEREIGN TRUST INSURANCE |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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