Correlation Between CUSTODIAN INVESTMENT and CORNERSTONE INSURANCE
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By analyzing existing cross correlation between CUSTODIAN INVESTMENT PLC and CORNERSTONE INSURANCE PLC, you can compare the effects of market volatilities on CUSTODIAN INVESTMENT and CORNERSTONE 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 CUSTODIAN INVESTMENT with a short position of CORNERSTONE INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CUSTODIAN INVESTMENT and CORNERSTONE INSURANCE.
Diversification Opportunities for CUSTODIAN INVESTMENT and CORNERSTONE INSURANCE
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CUSTODIAN and CORNERSTONE is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CUSTODIAN INVESTMENT PLC and CORNERSTONE INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNERSTONE INSURANCE PLC and CUSTODIAN INVESTMENT 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 CUSTODIAN INVESTMENT PLC are associated (or correlated) with CORNERSTONE INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNERSTONE INSURANCE PLC has no effect on the direction of CUSTODIAN INVESTMENT i.e., CUSTODIAN INVESTMENT and CORNERSTONE INSURANCE go up and down completely randomly.
Pair Corralation between CUSTODIAN INVESTMENT and CORNERSTONE INSURANCE
Assuming the 90 days trading horizon CUSTODIAN INVESTMENT PLC is expected to generate 0.58 times more return on investment than CORNERSTONE INSURANCE. However, CUSTODIAN INVESTMENT PLC is 1.73 times less risky than CORNERSTONE INSURANCE. It trades about 0.04 of its potential returns per unit of risk. CORNERSTONE INSURANCE PLC is currently generating about -0.28 per unit of risk. If you would invest 1,865 in CUSTODIAN INVESTMENT PLC on November 5, 2024 and sell it today you would earn a total of 25.00 from holding CUSTODIAN INVESTMENT PLC or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CUSTODIAN INVESTMENT PLC vs. CORNERSTONE INSURANCE PLC
Performance |
| Timeline |
| CUSTODIAN INVESTMENT PLC |
| CORNERSTONE INSURANCE PLC |
CUSTODIAN INVESTMENT and CORNERSTONE INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CUSTODIAN INVESTMENT and CORNERSTONE INSURANCE
The main advantage of trading using opposite CUSTODIAN INVESTMENT and CORNERSTONE INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CUSTODIAN INVESTMENT position performs unexpectedly, CORNERSTONE 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 CORNERSTONE INSURANCE will offset losses from the drop in CORNERSTONE INSURANCE's long position.| CUSTODIAN INVESTMENT vs. GUINEA INSURANCE PLC | CUSTODIAN INVESTMENT vs. SECURE ELECTRONIC TECHNOLOGY | CUSTODIAN INVESTMENT vs. VFD GROUP | CUSTODIAN INVESTMENT vs. IKEJA HOTELS PLC |
| CORNERSTONE INSURANCE vs. AIICO INSURANCE PLC | CORNERSTONE INSURANCE vs. UNITED BANK FOR | CORNERSTONE INSURANCE vs. FIDELITY BANK PLC | CORNERSTONE INSURANCE vs. ABC TRANSPORT 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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