Correlation Between CORNERSTONE INSURANCE and GUINEA INSURANCE
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By analyzing existing cross correlation between CORNERSTONE INSURANCE PLC and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on CORNERSTONE INSURANCE 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 CORNERSTONE INSURANCE with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORNERSTONE INSURANCE and GUINEA INSURANCE.
Diversification Opportunities for CORNERSTONE INSURANCE and GUINEA INSURANCE
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CORNERSTONE and GUINEA is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding CORNERSTONE INSURANCE 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 CORNERSTONE 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 CORNERSTONE INSURANCE 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 CORNERSTONE INSURANCE i.e., CORNERSTONE INSURANCE and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between CORNERSTONE INSURANCE and GUINEA INSURANCE
Assuming the 90 days trading horizon CORNERSTONE INSURANCE PLC is expected to generate 0.87 times more return on investment than GUINEA INSURANCE. However, CORNERSTONE INSURANCE PLC is 1.14 times less risky than GUINEA INSURANCE. It trades about -0.2 of its potential returns per unit of risk. GUINEA INSURANCE PLC is currently generating about -0.22 per unit of risk. If you would invest 435.00 in CORNERSTONE INSURANCE PLC on November 4, 2024 and sell it today you would lose (88.00) from holding CORNERSTONE INSURANCE PLC or give up 20.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORNERSTONE INSURANCE PLC vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| CORNERSTONE INSURANCE PLC |
| GUINEA INSURANCE PLC |
CORNERSTONE INSURANCE and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORNERSTONE INSURANCE and GUINEA INSURANCE
The main advantage of trading using opposite CORNERSTONE INSURANCE and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORNERSTONE INSURANCE 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.| CORNERSTONE INSURANCE vs. AIICO INSURANCE PLC | CORNERSTONE INSURANCE vs. UNITED BANK FOR | CORNERSTONE INSURANCE vs. FIDELITY BANK PLC | CORNERSTONE INSURANCE vs. ABC TRANSPORT PLC |
| GUINEA INSURANCE vs. ABC TRANSPORT PLC | GUINEA INSURANCE vs. UNITY BANK PLC | GUINEA INSURANCE vs. GOLDEN GUINEA BREWERIES | GUINEA INSURANCE vs. GOLDLINK INSURANCE PLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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