Correlation Between GUINEA INSURANCE and Dow Jones
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and Dow Jones Industrial, you can compare the effects of market volatilities on GUINEA INSURANCE and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and Dow Jones.
Diversification Opportunities for GUINEA INSURANCE and Dow Jones
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GUINEA and Dow is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and Dow Jones go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and Dow Jones
Assuming the 90 days trading horizon GUINEA INSURANCE PLC is expected to generate 6.6 times more return on investment than Dow Jones. However, GUINEA INSURANCE is 6.6 times more volatile than Dow Jones Industrial. It trades about 0.18 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 49.00 in GUINEA INSURANCE PLC on October 26, 2024 and sell it today you would earn a total of 34.00 from holding GUINEA INSURANCE PLC or generate 69.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. Dow Jones Industrial
Performance |
| Timeline |
GUINEA INSURANCE and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
GUINEA INSURANCE PLC
Pair trading matchups for GUINEA INSURANCE
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with GUINEA INSURANCE and Dow Jones
The main advantage of trading using opposite GUINEA INSURANCE and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| GUINEA INSURANCE vs. TRANSCORP HOTELS PLC | GUINEA INSURANCE vs. ZENITH BANK PLC | GUINEA INSURANCE vs. VETIVA BANKING ETF | GUINEA INSURANCE vs. INDUSTRIAL MEDICAL GASES |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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