Correlation Between GUINEA INSURANCE and NEM INSURANCE
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and NEM INSURANCE PLC, you can compare the effects of market volatilities on GUINEA INSURANCE and NEM 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 GUINEA INSURANCE with a short position of NEM INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and NEM INSURANCE.
Diversification Opportunities for GUINEA INSURANCE and NEM INSURANCE
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GUINEA and NEM is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and NEM INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEM INSURANCE PLC 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 NEM INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEM INSURANCE PLC has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and NEM INSURANCE go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and NEM INSURANCE
Assuming the 90 days trading horizon GUINEA INSURANCE PLC is expected to generate 1.36 times more return on investment than NEM INSURANCE. However, GUINEA INSURANCE is 1.36 times more volatile than NEM INSURANCE PLC. It trades about 0.07 of its potential returns per unit of risk. NEM INSURANCE PLC is currently generating about 0.06 per unit of risk. If you would invest 20.00 in GUINEA INSURANCE PLC on September 3, 2024 and sell it today you would earn a total of 30.00 from holding GUINEA INSURANCE PLC or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.24% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. NEM INSURANCE PLC
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| NEM INSURANCE PLC |
GUINEA INSURANCE and NEM INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and NEM INSURANCE
The main advantage of trading using opposite GUINEA INSURANCE and NEM INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, NEM 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 NEM INSURANCE will offset losses from the drop in NEM INSURANCE's long position.| GUINEA INSURANCE vs. MULTI TREX INTEGRATED FOODS | GUINEA INSURANCE vs. FIDELITY BANK PLC | GUINEA INSURANCE vs. GOLDLINK INSURANCE PLC | GUINEA INSURANCE vs. C I LEASING |
| NEM INSURANCE vs. ZENITH BANK PLC | NEM INSURANCE vs. ABC TRANSPORT PLC | NEM INSURANCE vs. MULTIVERSE MINING AND | NEM INSURANCE vs. GOLDLINK INSURANCE 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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