Correlation Between ECOBANK TRANSNATIONAL and CORNERSTONE INSURANCE
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By analyzing existing cross correlation between ECOBANK TRANSNATIONAL INCORPORATED and CORNERSTONE INSURANCE PLC, you can compare the effects of market volatilities on ECOBANK TRANSNATIONAL 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 ECOBANK TRANSNATIONAL with a short position of CORNERSTONE INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECOBANK TRANSNATIONAL and CORNERSTONE INSURANCE.
Diversification Opportunities for ECOBANK TRANSNATIONAL and CORNERSTONE INSURANCE
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ECOBANK and CORNERSTONE is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding ECOBANK TRANSNATIONAL INCORPOR 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 ECOBANK TRANSNATIONAL 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 ECOBANK TRANSNATIONAL INCORPORATED 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 ECOBANK TRANSNATIONAL i.e., ECOBANK TRANSNATIONAL and CORNERSTONE INSURANCE go up and down completely randomly.
Pair Corralation between ECOBANK TRANSNATIONAL and CORNERSTONE INSURANCE
Assuming the 90 days trading horizon ECOBANK TRANSNATIONAL is expected to generate 1.98 times less return on investment than CORNERSTONE INSURANCE. But when comparing it to its historical volatility, ECOBANK TRANSNATIONAL INCORPORATED is 3.04 times less risky than CORNERSTONE INSURANCE. It trades about 0.19 of its potential returns per unit of risk. CORNERSTONE INSURANCE PLC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 261.00 in CORNERSTONE INSURANCE PLC on November 6, 2024 and sell it today you would earn a total of 81.00 from holding CORNERSTONE INSURANCE PLC or generate 31.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.36% |
| Values | Daily Returns |
ECOBANK TRANSNATIONAL INCORPOR vs. CORNERSTONE INSURANCE PLC
Performance |
| Timeline |
| ECOBANK TRANSNATIONAL |
| CORNERSTONE INSURANCE PLC |
ECOBANK TRANSNATIONAL and CORNERSTONE INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECOBANK TRANSNATIONAL and CORNERSTONE INSURANCE
The main advantage of trading using opposite ECOBANK TRANSNATIONAL and CORNERSTONE INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECOBANK TRANSNATIONAL 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.| ECOBANK TRANSNATIONAL vs. UNITED BANK FOR | ECOBANK TRANSNATIONAL vs. ZENITH BANK PLC | ECOBANK TRANSNATIONAL vs. CUSTODIAN INVESTMENT PLC | ECOBANK TRANSNATIONAL vs. STERLING FINANCIAL HOLDINGS |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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