Correlation Between CORNERSTONE INSURANCE and INDUSTRIAL MEDICAL
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By analyzing existing cross correlation between CORNERSTONE INSURANCE PLC and INDUSTRIAL MEDICAL GASES, you can compare the effects of market volatilities on CORNERSTONE INSURANCE and INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORNERSTONE INSURANCE and INDUSTRIAL MEDICAL.
Diversification Opportunities for CORNERSTONE INSURANCE and INDUSTRIAL MEDICAL
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CORNERSTONE and INDUSTRIAL is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CORNERSTONE INSURANCE PLC and INDUSTRIAL MEDICAL GASES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDUSTRIAL MEDICAL GASES 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 INDUSTRIAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDUSTRIAL MEDICAL GASES has no effect on the direction of CORNERSTONE INSURANCE i.e., CORNERSTONE INSURANCE and INDUSTRIAL MEDICAL go up and down completely randomly.
Pair Corralation between CORNERSTONE INSURANCE and INDUSTRIAL MEDICAL
Assuming the 90 days trading horizon CORNERSTONE INSURANCE PLC is expected to generate 183.39 times more return on investment than INDUSTRIAL MEDICAL. However, CORNERSTONE INSURANCE is 183.39 times more volatile than INDUSTRIAL MEDICAL GASES. It trades about 0.14 of its potential returns per unit of risk. INDUSTRIAL MEDICAL GASES is currently generating about 0.23 per unit of risk. If you would invest 327.00 in CORNERSTONE INSURANCE PLC on October 25, 2024 and sell it today you would earn a total of 44.00 from holding CORNERSTONE INSURANCE PLC or generate 13.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
CORNERSTONE INSURANCE PLC vs. INDUSTRIAL MEDICAL GASES
Performance |
| Timeline |
| CORNERSTONE INSURANCE PLC |
| INDUSTRIAL MEDICAL GASES |
CORNERSTONE INSURANCE and INDUSTRIAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORNERSTONE INSURANCE and INDUSTRIAL MEDICAL
The main advantage of trading using opposite CORNERSTONE INSURANCE and INDUSTRIAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORNERSTONE INSURANCE position performs unexpectedly, INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL will offset losses from the drop in INDUSTRIAL MEDICAL's long position.| CORNERSTONE INSURANCE vs. GUINEA INSURANCE PLC | CORNERSTONE INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | CORNERSTONE INSURANCE vs. VETIVA BANKING ETF | CORNERSTONE INSURANCE vs. BUA FOODS PLC |
| INDUSTRIAL MEDICAL vs. GUINEA INSURANCE PLC | INDUSTRIAL MEDICAL vs. SECURE ELECTRONIC TECHNOLOGY | INDUSTRIAL MEDICAL vs. VETIVA BANKING ETF | INDUSTRIAL MEDICAL vs. BUA FOODS 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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