Correlation Between CIC INSURANCE and ABSA NEW
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By analyzing existing cross correlation between CIC INSURANCE GROUP and ABSA NEW GOLD, you can compare the effects of market volatilities on CIC INSURANCE and ABSA NEW 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 ABSA NEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIC INSURANCE and ABSA NEW.
Diversification Opportunities for CIC INSURANCE and ABSA NEW
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIC and ABSA is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CIC INSURANCE GROUP and ABSA NEW GOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABSA NEW GOLD 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 ABSA NEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABSA NEW GOLD has no effect on the direction of CIC INSURANCE i.e., CIC INSURANCE and ABSA NEW go up and down completely randomly.
Pair Corralation between CIC INSURANCE and ABSA NEW
Assuming the 90 days trading horizon CIC INSURANCE GROUP is expected to under-perform the ABSA NEW. In addition to that, CIC INSURANCE is 1.93 times more volatile than ABSA NEW GOLD. It trades about -0.01 of its total potential returns per unit of risk. ABSA NEW GOLD is currently generating about 0.08 per unit of volatility. If you would invest 253,000 in ABSA NEW GOLD on September 2, 2024 and sell it today you would earn a total of 69,000 from holding ABSA NEW GOLD or generate 27.27% 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. ABSA NEW GOLD
Performance |
| Timeline |
| CIC INSURANCE GROUP |
| ABSA NEW GOLD |
CIC INSURANCE and ABSA NEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIC INSURANCE and ABSA NEW
The main advantage of trading using opposite CIC INSURANCE and ABSA NEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIC INSURANCE position performs unexpectedly, ABSA NEW 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 ABSA NEW will offset losses from the drop in ABSA NEW's long position.| CIC INSURANCE vs. DIAMOND TRUST BANK | CIC INSURANCE vs. EAST AFRICAN BREWERIES | CIC INSURANCE vs. HOMEBOYZ ENTERTAINMENT PLC | CIC INSURANCE vs. CARBACID INVESTMENTS LTD |
| ABSA NEW vs. DIAMOND TRUST BANK | ABSA NEW vs. CENTUM INVESTMENT PANY | ABSA NEW vs. CIC INSURANCE GROUP | ABSA NEW 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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