Correlation Between GUINEA INSURANCE and SFS REAL

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Can any of the company-specific risk be diversified away by investing in both GUINEA INSURANCE and SFS REAL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GUINEA INSURANCE and SFS REAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GUINEA INSURANCE PLC and SFS REAL ESTATE, you can compare the effects of market volatilities on GUINEA INSURANCE and SFS REAL 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 SFS REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and SFS REAL.

Diversification Opportunities for GUINEA INSURANCE and SFS REAL

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GUINEA and SFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and SFS REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFS REAL ESTATE 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 SFS REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFS REAL ESTATE has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and SFS REAL go up and down completely randomly.

Pair Corralation between GUINEA INSURANCE and SFS REAL

If you would invest  51.00  in GUINEA INSURANCE PLC on October 1, 2024 and sell it today you would earn a total of  17.00  from holding GUINEA INSURANCE PLC or generate 33.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

GUINEA INSURANCE PLC  vs.  SFS REAL ESTATE

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -10010203040
JavaScript chart by amCharts 3.21.15GUINEAINS SFSREIT
       Timeline  
GUINEA INSURANCE PLC 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in GUINEA INSURANCE PLC are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, GUINEA INSURANCE demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecDec0.450.50.550.60.650.70.75
SFS REAL ESTATE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SFS REAL ESTATE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, SFS REAL is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecDec180185

GUINEA INSURANCE and SFS REAL Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-14.98-11.22-7.46-3.70.06684.018.0112.0216.02 0.0050.0100.015
JavaScript chart by amCharts 3.21.15GUINEAINS SFSREIT
       Returns  

Pair Trading with GUINEA INSURANCE and SFS REAL

The main advantage of trading using opposite GUINEA INSURANCE and SFS REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, SFS REAL 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 SFS REAL will offset losses from the drop in SFS REAL's long position.
The idea behind GUINEA INSURANCE PLC and SFS REAL ESTATE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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