Correlation Between INTERNATIONAL ENERGY and CORNERSTONE INSURANCE
Specify exactly 2 symbols:
By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and CORNERSTONE INSURANCE PLC, you can compare the effects of market volatilities on INTERNATIONAL ENERGY 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 ENERGY with a short position of CORNERSTONE INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and CORNERSTONE INSURANCE.
Diversification Opportunities for INTERNATIONAL ENERGY and CORNERSTONE INSURANCE
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERNATIONAL and CORNERSTONE is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE 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 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 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 ENERGY i.e., INTERNATIONAL ENERGY and CORNERSTONE INSURANCE go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and CORNERSTONE INSURANCE
Assuming the 90 days trading horizon INTERNATIONAL ENERGY is expected to generate 7.28 times less return on investment than CORNERSTONE INSURANCE. But when comparing it to its historical volatility, INTERNATIONAL ENERGY INSURANCE is 1.44 times less risky than CORNERSTONE INSURANCE. It trades about 0.02 of its potential returns per unit of risk. CORNERSTONE INSURANCE PLC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 65.00 in CORNERSTONE INSURANCE PLC on August 31, 2024 and sell it today you would earn a total of 210.00 from holding CORNERSTONE INSURANCE PLC or generate 323.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. CORNERSTONE INSURANCE PLC
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| CORNERSTONE INSURANCE PLC |
INTERNATIONAL ENERGY and CORNERSTONE INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and CORNERSTONE INSURANCE
The main advantage of trading using opposite INTERNATIONAL ENERGY and CORNERSTONE INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY 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 ENERGY vs. UNITED BANK FOR | INTERNATIONAL ENERGY vs. STERLING FINANCIAL HOLDINGS | INTERNATIONAL ENERGY vs. AFROMEDIA PLC | INTERNATIONAL ENERGY vs. CORNERSTONE INSURANCE PLC |
| CORNERSTONE INSURANCE vs. BUA FOODS PLC | CORNERSTONE INSURANCE vs. STACO INSURANCE PLC | CORNERSTONE INSURANCE vs. ASO SAVINGS AND | CORNERSTONE INSURANCE vs. UNION HOMES SAVINGS |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |