Correlation Between INTERNATIONAL BREWERIES and CORONATION INSURANCE
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By analyzing existing cross correlation between INTERNATIONAL BREWERIES PLC and CORONATION INSURANCE PLC, you can compare the effects of market volatilities on INTERNATIONAL BREWERIES and CORONATION 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 CORONATION INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL BREWERIES and CORONATION INSURANCE.
Diversification Opportunities for INTERNATIONAL BREWERIES and CORONATION INSURANCE
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between INTERNATIONAL and CORONATION is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL BREWERIES PLC and CORONATION INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORONATION 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 CORONATION INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORONATION INSURANCE PLC has no effect on the direction of INTERNATIONAL BREWERIES i.e., INTERNATIONAL BREWERIES and CORONATION INSURANCE go up and down completely randomly.
Pair Corralation between INTERNATIONAL BREWERIES and CORONATION INSURANCE
Assuming the 90 days trading horizon INTERNATIONAL BREWERIES is expected to generate 1417.71 times less return on investment than CORONATION INSURANCE. But when comparing it to its historical volatility, INTERNATIONAL BREWERIES PLC is 9.3 times less risky than CORONATION INSURANCE. It trades about 0.0 of its potential returns per unit of risk. CORONATION INSURANCE PLC is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 84.00 in CORONATION INSURANCE PLC on August 31, 2024 and sell it today you would earn a total of 19.00 from holding CORONATION INSURANCE PLC or generate 22.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL BREWERIES PLC vs. CORONATION INSURANCE PLC
Performance |
| Timeline |
| INTERNATIONAL BREWERIES |
| CORONATION INSURANCE PLC |
INTERNATIONAL BREWERIES and CORONATION INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL BREWERIES and CORONATION INSURANCE
The main advantage of trading using opposite INTERNATIONAL BREWERIES and CORONATION INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL BREWERIES position performs unexpectedly, CORONATION 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 CORONATION INSURANCE will offset losses from the drop in CORONATION 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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