Correlation Between GOLDEN GUINEA and AXAMANSARD INSURANCE
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By analyzing existing cross correlation between GOLDEN GUINEA BREWERIES and AXAMANSARD INSURANCE PLC, you can compare the effects of market volatilities on GOLDEN GUINEA 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 GOLDEN GUINEA with a short position of AXAMANSARD INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDEN GUINEA and AXAMANSARD INSURANCE.
Diversification Opportunities for GOLDEN GUINEA and AXAMANSARD INSURANCE
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GOLDEN and AXAMANSARD is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding GOLDEN GUINEA BREWERIES 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 GOLDEN GUINEA 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 GOLDEN GUINEA BREWERIES 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 GOLDEN GUINEA i.e., GOLDEN GUINEA and AXAMANSARD INSURANCE go up and down completely randomly.
Pair Corralation between GOLDEN GUINEA and AXAMANSARD INSURANCE
Assuming the 90 days trading horizon GOLDEN GUINEA BREWERIES is expected to generate 0.61 times more return on investment than AXAMANSARD INSURANCE. However, GOLDEN GUINEA BREWERIES is 1.64 times less risky than AXAMANSARD INSURANCE. It trades about 0.21 of its potential returns per unit of risk. AXAMANSARD INSURANCE PLC is currently generating about 0.07 per unit of risk. If you would invest 89.00 in GOLDEN GUINEA BREWERIES on August 31, 2024 and sell it today you would earn a total of 281.00 from holding GOLDEN GUINEA BREWERIES or generate 315.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.73% |
| Values | Daily Returns |
GOLDEN GUINEA BREWERIES vs. AXAMANSARD INSURANCE PLC
Performance |
| Timeline |
| GOLDEN GUINEA BREWERIES |
| AXAMANSARD INSURANCE PLC |
GOLDEN GUINEA and AXAMANSARD INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDEN GUINEA and AXAMANSARD INSURANCE
The main advantage of trading using opposite GOLDEN GUINEA and AXAMANSARD INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDEN GUINEA 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.| GOLDEN GUINEA vs. ZENITH BANK PLC | GOLDEN GUINEA vs. NEM INSURANCE PLC | GOLDEN GUINEA vs. AIICO INSURANCE PLC | GOLDEN GUINEA vs. UNITY 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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