Correlation Between GUINEA INSURANCE and ABBEY MORTGAGE
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and ABBEY MORTGAGE BANK, you can compare the effects of market volatilities on GUINEA INSURANCE and ABBEY MORTGAGE 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 GUINEA INSURANCE with a short position of ABBEY MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and ABBEY MORTGAGE.
Diversification Opportunities for GUINEA INSURANCE and ABBEY MORTGAGE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GUINEA and ABBEY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and ABBEY MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABBEY MORTGAGE BANK and GUINEA 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 GUINEA INSURANCE PLC are associated (or correlated) with ABBEY MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABBEY MORTGAGE BANK has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and ABBEY MORTGAGE go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and ABBEY MORTGAGE
Assuming the 90 days trading horizon GUINEA INSURANCE PLC is expected to generate 2.5 times more return on investment than ABBEY MORTGAGE. However, GUINEA INSURANCE is 2.5 times more volatile than ABBEY MORTGAGE BANK. It trades about 0.35 of its potential returns per unit of risk. ABBEY MORTGAGE BANK is currently generating about 0.3 per unit of risk. If you would invest 47.00 in GUINEA INSURANCE PLC on September 19, 2024 and sell it today you would earn a total of 25.00 from holding GUINEA INSURANCE PLC or generate 53.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. ABBEY MORTGAGE BANK
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| ABBEY MORTGAGE BANK |
GUINEA INSURANCE and ABBEY MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and ABBEY MORTGAGE
The main advantage of trading using opposite GUINEA INSURANCE and ABBEY MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, ABBEY MORTGAGE 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 ABBEY MORTGAGE will offset losses from the drop in ABBEY MORTGAGE's long position.| GUINEA INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | GUINEA INSURANCE vs. VFD GROUP | GUINEA INSURANCE vs. IKEJA HOTELS PLC | GUINEA INSURANCE vs. VETIVA S P |
| ABBEY MORTGAGE vs. GUINEA INSURANCE PLC | ABBEY MORTGAGE vs. SECURE ELECTRONIC TECHNOLOGY | ABBEY MORTGAGE vs. VFD GROUP | ABBEY MORTGAGE vs. IKEJA HOTELS 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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