Correlation Between GUINEA INSURANCE and INDUSTRIAL MEDICAL
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and INDUSTRIAL MEDICAL GASES, you can compare the effects of market volatilities on GUINEA INSURANCE and INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and INDUSTRIAL MEDICAL.
Diversification Opportunities for GUINEA INSURANCE and INDUSTRIAL MEDICAL
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GUINEA and INDUSTRIAL is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and INDUSTRIAL MEDICAL GASES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDUSTRIAL MEDICAL GASES 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 INDUSTRIAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDUSTRIAL MEDICAL GASES has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and INDUSTRIAL MEDICAL go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and INDUSTRIAL MEDICAL
Assuming the 90 days trading horizon GUINEA INSURANCE PLC is expected to under-perform the INDUSTRIAL MEDICAL. In addition to that, GUINEA INSURANCE is 168.84 times more volatile than INDUSTRIAL MEDICAL GASES. It trades about -0.34 of its total potential returns per unit of risk. INDUSTRIAL MEDICAL GASES is currently generating about 0.22 per unit of volatility. If you would invest 3,795 in INDUSTRIAL MEDICAL GASES on November 5, 2024 and sell it today you would earn a total of 5.00 from holding INDUSTRIAL MEDICAL GASES or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. INDUSTRIAL MEDICAL GASES
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| INDUSTRIAL MEDICAL GASES |
GUINEA INSURANCE and INDUSTRIAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and INDUSTRIAL MEDICAL
The main advantage of trading using opposite GUINEA INSURANCE and INDUSTRIAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL will offset losses from the drop in INDUSTRIAL MEDICAL's long position.| GUINEA INSURANCE vs. ABC TRANSPORT PLC | GUINEA INSURANCE vs. UNITY BANK PLC | GUINEA INSURANCE vs. GOLDEN GUINEA BREWERIES | GUINEA INSURANCE vs. GOLDLINK INSURANCE PLC |
| INDUSTRIAL MEDICAL vs. UNION HOMES REAL | INDUSTRIAL MEDICAL vs. JAIZ BANK PLC | INDUSTRIAL MEDICAL vs. AFROMEDIA PLC | INDUSTRIAL MEDICAL vs. FIDSON HEALTHCARE 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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