Correlation Between INDUSTRIAL MEDICAL and GUINEA INSURANCE
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL and GUINEA 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 GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and GUINEA INSURANCE.
Diversification Opportunities for INDUSTRIAL MEDICAL and GUINEA INSURANCE
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INDUSTRIAL and GUINEA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES and GUINEA INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUINEA 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 GUINEA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUINEA INSURANCE PLC has no effect on the direction of INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and GUINEA INSURANCE
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL is expected to generate 7.32 times less return on investment than GUINEA INSURANCE. But when comparing it to its historical volatility, INDUSTRIAL MEDICAL GASES is 5.3 times less risky than GUINEA INSURANCE. It trades about 0.13 of its potential returns per unit of risk. GUINEA INSURANCE PLC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 49.00 in GUINEA INSURANCE PLC on October 26, 2024 and sell it today you would earn a total of 34.00 from holding GUINEA INSURANCE PLC or generate 69.39% 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. GUINEA INSURANCE PLC
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| GUINEA INSURANCE PLC |
INDUSTRIAL MEDICAL and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and GUINEA INSURANCE
The main advantage of trading using opposite INDUSTRIAL MEDICAL and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL position performs unexpectedly, GUINEA 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 GUINEA INSURANCE will offset losses from the drop in GUINEA INSURANCE's long position.| INDUSTRIAL MEDICAL vs. AFRICAN ALLIANCE INSURANCE | INDUSTRIAL MEDICAL vs. NEM INSURANCE PLC | INDUSTRIAL MEDICAL vs. LIVINGTRUST MORTGAGE BANK | INDUSTRIAL MEDICAL vs. UNITY BANK PLC |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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