Correlation Between GREENWICH ASSET and GUINEA INSURANCE
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By analyzing existing cross correlation between GREENWICH ASSET ETF and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on GREENWICH ASSET and GUINEA 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 GREENWICH ASSET with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENWICH ASSET and GUINEA INSURANCE.
Diversification Opportunities for GREENWICH ASSET and GUINEA INSURANCE
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GREENWICH and GUINEA is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding GREENWICH ASSET ETF and GUINEA INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUINEA INSURANCE PLC and GREENWICH ASSET 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 GREENWICH ASSET ETF are associated (or correlated) with GUINEA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUINEA INSURANCE PLC has no effect on the direction of GREENWICH ASSET i.e., GREENWICH ASSET and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between GREENWICH ASSET and GUINEA INSURANCE
Assuming the 90 days trading horizon GREENWICH ASSET ETF is expected to under-perform the GUINEA INSURANCE. But the etf apears to be less risky and, when comparing its historical volatility, GREENWICH ASSET ETF is 1.69 times less risky than GUINEA INSURANCE. The etf trades about -0.33 of its potential returns per unit of risk. The GUINEA INSURANCE PLC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 47.00 in GUINEA INSURANCE PLC on September 5, 2024 and sell it today you would earn a total of 4.00 from holding GUINEA INSURANCE PLC or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENWICH ASSET ETF vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| GREENWICH ASSET ETF |
| GUINEA INSURANCE PLC |
GREENWICH ASSET and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENWICH ASSET and GUINEA INSURANCE
The main advantage of trading using opposite GREENWICH ASSET and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENWICH ASSET position performs unexpectedly, GUINEA 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 GUINEA INSURANCE will offset losses from the drop in GUINEA INSURANCE's long position.| GREENWICH ASSET vs. GUINEA INSURANCE PLC | GREENWICH ASSET vs. SECURE ELECTRONIC TECHNOLOGY | GREENWICH ASSET vs. AIRTEL AFRICA PLC | GREENWICH ASSET vs. VFD GROUP |
| GUINEA INSURANCE vs. CORNERSTONE INSURANCE PLC | GUINEA INSURANCE vs. UNIVERSAL INSURANCE PANY | GUINEA INSURANCE vs. AXAMANSARD INSURANCE PLC | GUINEA INSURANCE vs. CONSOLIDATED HALLMARK INSURANCE |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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