Correlation Between GUINEA INSURANCE and LIVINGTRUST MORTGAGE
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and LIVINGTRUST MORTGAGE BANK, you can compare the effects of market volatilities on GUINEA INSURANCE and LIVINGTRUST 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 LIVINGTRUST MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and LIVINGTRUST MORTGAGE.
Diversification Opportunities for GUINEA INSURANCE and LIVINGTRUST MORTGAGE
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between GUINEA and LIVINGTRUST is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and LIVINGTRUST MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIVINGTRUST 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 LIVINGTRUST MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIVINGTRUST MORTGAGE BANK has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and LIVINGTRUST MORTGAGE go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and LIVINGTRUST MORTGAGE
Assuming the 90 days trading horizon GUINEA INSURANCE is expected to generate 127.89 times less return on investment than LIVINGTRUST MORTGAGE. But when comparing it to its historical volatility, GUINEA INSURANCE PLC is 41.06 times less risky than LIVINGTRUST MORTGAGE. It trades about 0.08 of its potential returns per unit of risk. LIVINGTRUST MORTGAGE BANK is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 158.00 in LIVINGTRUST MORTGAGE BANK on September 19, 2024 and sell it today you would earn a total of 172.00 from holding LIVINGTRUST MORTGAGE BANK or generate 108.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.7% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. LIVINGTRUST MORTGAGE BANK
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| LIVINGTRUST MORTGAGE BANK |
GUINEA INSURANCE and LIVINGTRUST MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and LIVINGTRUST MORTGAGE
The main advantage of trading using opposite GUINEA INSURANCE and LIVINGTRUST MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, LIVINGTRUST 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 LIVINGTRUST MORTGAGE will offset losses from the drop in LIVINGTRUST 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 |
| LIVINGTRUST MORTGAGE vs. GUINEA INSURANCE PLC | LIVINGTRUST MORTGAGE vs. SECURE ELECTRONIC TECHNOLOGY | LIVINGTRUST MORTGAGE vs. VFD GROUP | LIVINGTRUST 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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