Correlation Between CORNERSTONE INSURANCE and VFD GROUP
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By analyzing existing cross correlation between CORNERSTONE INSURANCE PLC and VFD GROUP, you can compare the effects of market volatilities on CORNERSTONE INSURANCE and VFD GROUP 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 VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORNERSTONE INSURANCE and VFD GROUP.
Diversification Opportunities for CORNERSTONE INSURANCE and VFD GROUP
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CORNERSTONE and VFD is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CORNERSTONE INSURANCE PLC and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP 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 VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of CORNERSTONE INSURANCE i.e., CORNERSTONE INSURANCE and VFD GROUP go up and down completely randomly.
Pair Corralation between CORNERSTONE INSURANCE and VFD GROUP
Assuming the 90 days trading horizon CORNERSTONE INSURANCE PLC is expected to under-perform the VFD GROUP. But the stock apears to be less risky and, when comparing its historical volatility, CORNERSTONE INSURANCE PLC is 1.18 times less risky than VFD GROUP. The stock trades about -0.11 of its potential returns per unit of risk. The VFD GROUP is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,440 in VFD GROUP on November 29, 2024 and sell it today you would earn a total of 800.00 from holding VFD GROUP or generate 18.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORNERSTONE INSURANCE PLC vs. VFD GROUP
Performance |
| Timeline |
| CORNERSTONE INSURANCE PLC |
| VFD GROUP |
CORNERSTONE INSURANCE and VFD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORNERSTONE INSURANCE and VFD GROUP
The main advantage of trading using opposite CORNERSTONE INSURANCE and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORNERSTONE INSURANCE position performs unexpectedly, VFD GROUP 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 VFD GROUP will offset losses from the drop in VFD GROUP's long position.| CORNERSTONE INSURANCE vs. STACO INSURANCE PLC | CORNERSTONE INSURANCE vs. INTERNATIONAL BREWERIES PLC | CORNERSTONE INSURANCE vs. WEMA BANK PLC | CORNERSTONE INSURANCE vs. JAIZ BANK PLC |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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