Correlation Between CORNERSTONE INSURANCE and INTERNATIONAL ENERGY
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By analyzing existing cross correlation between CORNERSTONE INSURANCE PLC and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on CORNERSTONE INSURANCE and INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORNERSTONE INSURANCE and INTERNATIONAL ENERGY.
Diversification Opportunities for CORNERSTONE INSURANCE and INTERNATIONAL ENERGY
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CORNERSTONE and INTERNATIONAL is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CORNERSTONE INSURANCE PLC and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of CORNERSTONE INSURANCE i.e., CORNERSTONE INSURANCE and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between CORNERSTONE INSURANCE and INTERNATIONAL ENERGY
Assuming the 90 days trading horizon CORNERSTONE INSURANCE PLC is expected to under-perform the INTERNATIONAL ENERGY. But the stock apears to be less risky and, when comparing its historical volatility, CORNERSTONE INSURANCE PLC is 1.52 times less risky than INTERNATIONAL ENERGY. The stock trades about -0.02 of its potential returns per unit of risk. The INTERNATIONAL ENERGY INSURANCE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 132.00 in INTERNATIONAL ENERGY INSURANCE on September 2, 2024 and sell it today you would earn a total of 4.00 from holding INTERNATIONAL ENERGY INSURANCE or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORNERSTONE INSURANCE PLC vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| CORNERSTONE INSURANCE PLC |
| INTERNATIONAL ENERGY |
CORNERSTONE INSURANCE and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORNERSTONE INSURANCE and INTERNATIONAL ENERGY
The main advantage of trading using opposite CORNERSTONE INSURANCE and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORNERSTONE INSURANCE position performs unexpectedly, INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY will offset losses from the drop in INTERNATIONAL ENERGY's long position.| CORNERSTONE INSURANCE vs. VFD GROUP | CORNERSTONE INSURANCE vs. DEAP CAPITAL MANAGEMENT | CORNERSTONE INSURANCE vs. VETIVA INDUSTRIAL ETF |
| INTERNATIONAL ENERGY vs. VFD GROUP | INTERNATIONAL ENERGY vs. DEAP CAPITAL MANAGEMENT | INTERNATIONAL ENERGY vs. VETIVA INDUSTRIAL ETF |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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