Correlation Between GUINEA INSURANCE and NPF MICRO
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and NPF MICRO FINANCE, you can compare the effects of market volatilities on GUINEA INSURANCE and NPF MICRO 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 NPF MICRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and NPF MICRO.
Diversification Opportunities for GUINEA INSURANCE and NPF MICRO
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GUINEA and NPF is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and NPF MICRO FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NPF MICRO FINANCE 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 NPF MICRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NPF MICRO FINANCE has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and NPF MICRO go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and NPF MICRO
Assuming the 90 days trading horizon GUINEA INSURANCE PLC is expected to generate 1.68 times more return on investment than NPF MICRO. However, GUINEA INSURANCE is 1.68 times more volatile than NPF MICRO FINANCE. It trades about 0.21 of its potential returns per unit of risk. NPF MICRO FINANCE is currently generating about 0.02 per unit of risk. If you would invest 44.00 in GUINEA INSURANCE PLC on September 13, 2024 and sell it today you would earn a total of 11.00 from holding GUINEA INSURANCE PLC or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. NPF MICRO FINANCE
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| NPF MICRO FINANCE |
GUINEA INSURANCE and NPF MICRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and NPF MICRO
The main advantage of trading using opposite GUINEA INSURANCE and NPF MICRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, NPF MICRO 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 NPF MICRO will offset losses from the drop in NPF MICRO's long position.| GUINEA INSURANCE vs. INTERNATIONAL ENERGY INSURANCE | GUINEA INSURANCE vs. INDUSTRIAL MEDICAL GASES | GUINEA INSURANCE vs. INTERNATIONAL BREWERIES PLC | GUINEA INSURANCE vs. AFRICAN ALLIANCE INSURANCE |
| NPF MICRO vs. CORONATION INSURANCE PLC | NPF MICRO vs. VETIVA BANKING ETF | NPF MICRO vs. GUINEA INSURANCE PLC | NPF MICRO vs. STANDARD ALLIANCE INSURANCE |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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