Correlation Between CIC INSURANCE and KENYA RE
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By analyzing existing cross correlation between CIC INSURANCE GROUP and KENYA RE INSURANCE PORATION, you can compare the effects of market volatilities on CIC INSURANCE and KENYA RE 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 KENYA RE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIC INSURANCE and KENYA RE.
Diversification Opportunities for CIC INSURANCE and KENYA RE
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CIC and KENYA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CIC INSURANCE GROUP and KENYA RE INSURANCE PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENYA RE INSURANCE 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 KENYA RE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENYA RE INSURANCE has no effect on the direction of CIC INSURANCE i.e., CIC INSURANCE and KENYA RE go up and down completely randomly.
Pair Corralation between CIC INSURANCE and KENYA RE
Assuming the 90 days trading horizon CIC INSURANCE GROUP is expected to under-perform the KENYA RE. In addition to that, CIC INSURANCE is 1.18 times more volatile than KENYA RE INSURANCE PORATION. It trades about -0.16 of its total potential returns per unit of risk. KENYA RE INSURANCE PORATION is currently generating about -0.17 per unit of volatility. If you would invest 120.00 in KENYA RE INSURANCE PORATION on August 24, 2024 and sell it today you would lose (9.00) from holding KENYA RE INSURANCE PORATION or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIC INSURANCE GROUP vs. KENYA RE INSURANCE PORATION
Performance |
| Timeline |
| CIC INSURANCE GROUP |
| KENYA RE INSURANCE |
CIC INSURANCE and KENYA RE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIC INSURANCE and KENYA RE
The main advantage of trading using opposite CIC INSURANCE and KENYA RE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIC INSURANCE position performs unexpectedly, KENYA RE 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 KENYA RE will offset losses from the drop in KENYA RE's long position.| CIC INSURANCE vs. SAFARICOM PLC | CIC INSURANCE vs. ABSA BANK OF | CIC INSURANCE vs. BRITISH AMERICAN TOBACCO | CIC INSURANCE vs. CO OPERATIVE BANK OF |
| KENYA RE vs. CIC INSURANCE GROUP | KENYA RE vs. STANDARD CHARTERED BANK | KENYA RE vs. DIAMOND TRUST BANK | KENYA RE vs. ABSA BANK OF |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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