Correlation Between CORNERSTONE INSURANCE and AXAMANSARD INSURANCE
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By analyzing existing cross correlation between CORNERSTONE INSURANCE PLC and AXAMANSARD INSURANCE PLC, you can compare the effects of market volatilities on CORNERSTONE INSURANCE and AXAMANSARD 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 AXAMANSARD INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORNERSTONE INSURANCE and AXAMANSARD INSURANCE.
Diversification Opportunities for CORNERSTONE INSURANCE and AXAMANSARD INSURANCE
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CORNERSTONE and AXAMANSARD is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CORNERSTONE INSURANCE PLC and AXAMANSARD INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXAMANSARD 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 AXAMANSARD INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXAMANSARD INSURANCE PLC has no effect on the direction of CORNERSTONE INSURANCE i.e., CORNERSTONE INSURANCE and AXAMANSARD INSURANCE go up and down completely randomly.
Pair Corralation between CORNERSTONE INSURANCE and AXAMANSARD INSURANCE
Assuming the 90 days trading horizon CORNERSTONE INSURANCE PLC is expected to generate 1.43 times more return on investment than AXAMANSARD INSURANCE. However, CORNERSTONE INSURANCE is 1.43 times more volatile than AXAMANSARD INSURANCE PLC. It trades about 0.14 of its potential returns per unit of risk. AXAMANSARD INSURANCE PLC is currently generating about 0.09 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 | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
CORNERSTONE INSURANCE PLC vs. AXAMANSARD INSURANCE PLC
Performance |
| Timeline |
| CORNERSTONE INSURANCE PLC |
| AXAMANSARD INSURANCE PLC |
CORNERSTONE INSURANCE and AXAMANSARD INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORNERSTONE INSURANCE and AXAMANSARD INSURANCE
The main advantage of trading using opposite CORNERSTONE INSURANCE and AXAMANSARD INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORNERSTONE INSURANCE position performs unexpectedly, AXAMANSARD 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 AXAMANSARD INSURANCE will offset losses from the drop in AXAMANSARD INSURANCE'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 |
| AXAMANSARD INSURANCE vs. GUINEA INSURANCE PLC | AXAMANSARD INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | AXAMANSARD INSURANCE vs. VETIVA BANKING ETF | AXAMANSARD INSURANCE 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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