Correlation Between INDUSTRIAL MEDICAL and AIICO INSURANCE
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and AIICO INSURANCE PLC, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL and AIICO 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 INDUSTRIAL MEDICAL with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and AIICO INSURANCE.
Diversification Opportunities for INDUSTRIAL MEDICAL and AIICO INSURANCE
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INDUSTRIAL and AIICO is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES and AIICO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIICO INSURANCE PLC and INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL GASES are associated (or correlated) with AIICO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIICO INSURANCE PLC has no effect on the direction of INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and AIICO INSURANCE go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and AIICO INSURANCE
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL is expected to generate 66.07 times less return on investment than AIICO INSURANCE. But when comparing it to its historical volatility, INDUSTRIAL MEDICAL GASES is 190.07 times less risky than AIICO INSURANCE. It trades about 0.23 of its potential returns per unit of risk. AIICO INSURANCE PLC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 152.00 in AIICO INSURANCE PLC on October 23, 2024 and sell it today you would earn a total of 9.00 from holding AIICO INSURANCE PLC or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INDUSTRIAL MEDICAL GASES vs. AIICO INSURANCE PLC
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| AIICO INSURANCE PLC |
INDUSTRIAL MEDICAL and AIICO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and AIICO INSURANCE
The main advantage of trading using opposite INDUSTRIAL MEDICAL and AIICO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL position performs unexpectedly, AIICO 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 AIICO INSURANCE will offset losses from the drop in AIICO INSURANCE's long position.| INDUSTRIAL MEDICAL vs. ABC TRANSPORT PLC | INDUSTRIAL MEDICAL vs. UNION HOMES REAL | INDUSTRIAL MEDICAL vs. FIDSON HEALTHCARE PLC | INDUSTRIAL MEDICAL vs. AFRICAN ALLIANCE INSURANCE |
| AIICO INSURANCE vs. ABC TRANSPORT PLC | AIICO INSURANCE vs. NEM INSURANCE PLC | AIICO INSURANCE vs. GOLDEN GUINEA BREWERIES | AIICO INSURANCE vs. UNITY BANK 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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