Correlation Between GUINEA INSURANCE and TRANSCORP HOTELS
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and TRANSCORP HOTELS PLC, you can compare the effects of market volatilities on GUINEA INSURANCE and TRANSCORP HOTELS 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 TRANSCORP HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and TRANSCORP HOTELS.
Diversification Opportunities for GUINEA INSURANCE and TRANSCORP HOTELS
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GUINEA and TRANSCORP is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and TRANSCORP HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCORP HOTELS 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 TRANSCORP HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCORP HOTELS PLC has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and TRANSCORP HOTELS go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and TRANSCORP HOTELS
If you would invest 49.00 in GUINEA INSURANCE PLC on August 28, 2024 and sell it today you would earn a total of 1.00 from holding GUINEA INSURANCE PLC or generate 2.04% 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. TRANSCORP HOTELS PLC
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| TRANSCORP HOTELS PLC |
GUINEA INSURANCE and TRANSCORP HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and TRANSCORP HOTELS
The main advantage of trading using opposite GUINEA INSURANCE and TRANSCORP HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, TRANSCORP HOTELS 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 TRANSCORP HOTELS will offset losses from the drop in TRANSCORP HOTELS's long position.The idea behind GUINEA INSURANCE PLC and TRANSCORP HOTELS PLC 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.| TRANSCORP HOTELS vs. VETIVA BANKING ETF | TRANSCORP HOTELS vs. CONSOLIDATED HALLMARK INSURANCE | TRANSCORP HOTELS vs. FIDELITY BANK PLC | TRANSCORP HOTELS 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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