Correlation Between INTERNATIONAL ENERGY and AIICO INSURANCE
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By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and AIICO INSURANCE PLC, you can compare the effects of market volatilities on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and AIICO INSURANCE.
Diversification Opportunities for INTERNATIONAL ENERGY and AIICO INSURANCE
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between INTERNATIONAL and AIICO is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE 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 INTERNATIONAL ENERGY 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 ENERGY INSURANCE 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 INTERNATIONAL ENERGY i.e., INTERNATIONAL ENERGY and AIICO INSURANCE go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and AIICO INSURANCE
Assuming the 90 days trading horizon INTERNATIONAL ENERGY INSURANCE is expected to generate 0.77 times more return on investment than AIICO INSURANCE. However, INTERNATIONAL ENERGY INSURANCE is 1.3 times less risky than AIICO INSURANCE. It trades about 0.24 of its potential returns per unit of risk. AIICO INSURANCE PLC is currently generating about 0.08 per unit of risk. If you would invest 159.00 in INTERNATIONAL ENERGY INSURANCE on October 23, 2024 and sell it today you would earn a total of 31.00 from holding INTERNATIONAL ENERGY INSURANCE or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. AIICO INSURANCE PLC
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| AIICO INSURANCE PLC |
INTERNATIONAL ENERGY and AIICO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and AIICO INSURANCE
The main advantage of trading using opposite INTERNATIONAL ENERGY and AIICO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY 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.| INTERNATIONAL ENERGY vs. AIICO INSURANCE PLC | INTERNATIONAL ENERGY vs. AXAMANSARD INSURANCE PLC | INTERNATIONAL ENERGY vs. GOLDLINK INSURANCE PLC | INTERNATIONAL ENERGY vs. LIVINGTRUST MORTGAGE BANK |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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