Correlation Between CHAMPION BREWERIES and GUINEA INSURANCE
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By analyzing existing cross correlation between CHAMPION BREWERIES PLC and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on CHAMPION BREWERIES and GUINEA 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 CHAMPION BREWERIES with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHAMPION BREWERIES and GUINEA INSURANCE.
Diversification Opportunities for CHAMPION BREWERIES and GUINEA INSURANCE
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between CHAMPION and GUINEA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CHAMPION BREWERIES PLC and GUINEA INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUINEA INSURANCE PLC and CHAMPION BREWERIES 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 CHAMPION BREWERIES PLC are associated (or correlated) with GUINEA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUINEA INSURANCE PLC has no effect on the direction of CHAMPION BREWERIES i.e., CHAMPION BREWERIES and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between CHAMPION BREWERIES and GUINEA INSURANCE
Assuming the 90 days trading horizon CHAMPION BREWERIES PLC is expected to generate 0.8 times more return on investment than GUINEA INSURANCE. However, CHAMPION BREWERIES PLC is 1.24 times less risky than GUINEA INSURANCE. It trades about 0.13 of its potential returns per unit of risk. GUINEA INSURANCE PLC is currently generating about 0.08 per unit of risk. If you would invest 311.00 in CHAMPION BREWERIES PLC on September 3, 2024 and sell it today you would earn a total of 60.00 from holding CHAMPION BREWERIES PLC or generate 19.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHAMPION BREWERIES PLC vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| CHAMPION BREWERIES PLC |
| GUINEA INSURANCE PLC |
CHAMPION BREWERIES and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHAMPION BREWERIES and GUINEA INSURANCE
The main advantage of trading using opposite CHAMPION BREWERIES and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAMPION BREWERIES position performs unexpectedly, GUINEA 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 GUINEA INSURANCE will offset losses from the drop in GUINEA INSURANCE's long position.| CHAMPION BREWERIES vs. ABC TRANSPORT PLC | CHAMPION BREWERIES vs. INTERNATIONAL BREWERIES PLC | CHAMPION BREWERIES vs. NEM INSURANCE PLC | CHAMPION BREWERIES vs. UNION HOMES REAL |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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