Correlation Between INTERNATIONAL BREWERIES and CORNERSTONE INSURANCE
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By analyzing existing cross correlation between INTERNATIONAL BREWERIES PLC and CORNERSTONE INSURANCE PLC, you can compare the effects of market volatilities on INTERNATIONAL BREWERIES and CORNERSTONE 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 INTERNATIONAL BREWERIES with a short position of CORNERSTONE INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL BREWERIES and CORNERSTONE INSURANCE.
Diversification Opportunities for INTERNATIONAL BREWERIES and CORNERSTONE INSURANCE
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERNATIONAL and CORNERSTONE is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL BREWERIES PLC and CORNERSTONE INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNERSTONE INSURANCE PLC and INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES PLC are associated (or correlated) with CORNERSTONE INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNERSTONE INSURANCE PLC has no effect on the direction of INTERNATIONAL BREWERIES i.e., INTERNATIONAL BREWERIES and CORNERSTONE INSURANCE go up and down completely randomly.
Pair Corralation between INTERNATIONAL BREWERIES and CORNERSTONE INSURANCE
Assuming the 90 days trading horizon INTERNATIONAL BREWERIES is expected to generate 681.43 times less return on investment than CORNERSTONE INSURANCE. But when comparing it to its historical volatility, INTERNATIONAL BREWERIES PLC is 7.89 times less risky than CORNERSTONE INSURANCE. It trades about 0.0 of its potential returns per unit of risk. CORNERSTONE INSURANCE PLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 250.00 in CORNERSTONE INSURANCE PLC on August 31, 2024 and sell it today you would earn a total of 25.00 from holding CORNERSTONE INSURANCE PLC or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL BREWERIES PLC vs. CORNERSTONE INSURANCE PLC
Performance |
| Timeline |
| INTERNATIONAL BREWERIES |
| CORNERSTONE INSURANCE PLC |
INTERNATIONAL BREWERIES and CORNERSTONE INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL BREWERIES and CORNERSTONE INSURANCE
The main advantage of trading using opposite INTERNATIONAL BREWERIES and CORNERSTONE INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL BREWERIES position performs unexpectedly, CORNERSTONE 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 CORNERSTONE INSURANCE will offset losses from the drop in CORNERSTONE INSURANCE's long position.| INTERNATIONAL BREWERIES vs. JAIZ BANK PLC | INTERNATIONAL BREWERIES vs. GOLDLINK INSURANCE PLC | INTERNATIONAL BREWERIES vs. STACO INSURANCE PLC | INTERNATIONAL BREWERIES vs. STERLING FINANCIAL HOLDINGS |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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