Correlation Between CORNERSTONE INSURANCE and VETIVA BANKING
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By analyzing existing cross correlation between CORNERSTONE INSURANCE PLC and VETIVA BANKING ETF, you can compare the effects of market volatilities on CORNERSTONE INSURANCE and VETIVA BANKING 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 VETIVA BANKING. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORNERSTONE INSURANCE and VETIVA BANKING.
Diversification Opportunities for CORNERSTONE INSURANCE and VETIVA BANKING
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CORNERSTONE and VETIVA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CORNERSTONE INSURANCE PLC and VETIVA BANKING ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VETIVA BANKING ETF 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 VETIVA BANKING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VETIVA BANKING ETF has no effect on the direction of CORNERSTONE INSURANCE i.e., CORNERSTONE INSURANCE and VETIVA BANKING go up and down completely randomly.
Pair Corralation between CORNERSTONE INSURANCE and VETIVA BANKING
Assuming the 90 days trading horizon CORNERSTONE INSURANCE PLC is expected to generate 1.87 times more return on investment than VETIVA BANKING. However, CORNERSTONE INSURANCE is 1.87 times more volatile than VETIVA BANKING ETF. It trades about 0.07 of its potential returns per unit of risk. VETIVA BANKING ETF is currently generating about 0.08 per unit of risk. If you would invest 111.00 in CORNERSTONE INSURANCE PLC on August 31, 2024 and sell it today you would earn a total of 145.00 from holding CORNERSTONE INSURANCE PLC or generate 130.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
CORNERSTONE INSURANCE PLC vs. VETIVA BANKING ETF
Performance |
| Timeline |
| CORNERSTONE INSURANCE PLC |
| VETIVA BANKING ETF |
CORNERSTONE INSURANCE and VETIVA BANKING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORNERSTONE INSURANCE and VETIVA BANKING
The main advantage of trading using opposite CORNERSTONE INSURANCE and VETIVA BANKING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORNERSTONE INSURANCE position performs unexpectedly, VETIVA BANKING 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 VETIVA BANKING will offset losses from the drop in VETIVA BANKING's long position.| CORNERSTONE INSURANCE vs. BUA FOODS PLC | CORNERSTONE INSURANCE vs. STACO INSURANCE PLC | CORNERSTONE INSURANCE vs. ASO SAVINGS AND | CORNERSTONE INSURANCE vs. UNION HOMES SAVINGS |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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