Correlation Between CIC INSURANCE and CENTUM INVESTMENT
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By analyzing existing cross correlation between CIC INSURANCE GROUP and CENTUM INVESTMENT PANY, you can compare the effects of market volatilities on CIC INSURANCE and CENTUM INVESTMENT 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 CIC INSURANCE with a short position of CENTUM INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIC INSURANCE and CENTUM INVESTMENT.
Diversification Opportunities for CIC INSURANCE and CENTUM INVESTMENT
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIC and CENTUM is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding CIC INSURANCE GROUP and CENTUM INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTUM INVESTMENT PANY and CIC 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 CIC INSURANCE GROUP are associated (or correlated) with CENTUM INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTUM INVESTMENT PANY has no effect on the direction of CIC INSURANCE i.e., CIC INSURANCE and CENTUM INVESTMENT go up and down completely randomly.
Pair Corralation between CIC INSURANCE and CENTUM INVESTMENT
Assuming the 90 days trading horizon CIC INSURANCE GROUP is expected to under-perform the CENTUM INVESTMENT. In addition to that, CIC INSURANCE is 2.18 times more volatile than CENTUM INVESTMENT PANY. It trades about -0.1 of its total potential returns per unit of risk. CENTUM INVESTMENT PANY is currently generating about 0.01 per unit of volatility. If you would invest 962.00 in CENTUM INVESTMENT PANY on September 3, 2024 and sell it today you would earn a total of 2.00 from holding CENTUM INVESTMENT PANY or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIC INSURANCE GROUP vs. CENTUM INVESTMENT PANY
Performance |
| Timeline |
| CIC INSURANCE GROUP |
| CENTUM INVESTMENT PANY |
CIC INSURANCE and CENTUM INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIC INSURANCE and CENTUM INVESTMENT
The main advantage of trading using opposite CIC INSURANCE and CENTUM INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIC INSURANCE position performs unexpectedly, CENTUM INVESTMENT 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 CENTUM INVESTMENT will offset losses from the drop in CENTUM INVESTMENT's long position.| CIC INSURANCE vs. BRITISH AMERICAN TOBACCO | CIC INSURANCE vs. CARBACID INVESTMENTS LTD | CIC INSURANCE vs. KENYA RE INSURANCE PORATION | CIC INSURANCE vs. STANDARD CHARTERED BANK |
| CENTUM INVESTMENT vs. HOME AFRIKA LTD | CENTUM INVESTMENT vs. NATION MEDIA GROUP | CENTUM INVESTMENT vs. STANDARD CHARTERED BANK | CENTUM INVESTMENT vs. CARBACID INVESTMENTS LTD |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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