Correlation Between INTERNATIONAL ENERGY and GUINEA INSURANCE
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By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and GUINEA INSURANCE.
Diversification Opportunities for INTERNATIONAL ENERGY and GUINEA INSURANCE
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INTERNATIONAL and GUINEA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE 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 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 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 INTERNATIONAL ENERGY i.e., INTERNATIONAL ENERGY and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and GUINEA INSURANCE
Assuming the 90 days trading horizon INTERNATIONAL ENERGY is expected to generate 5.18 times less return on investment than GUINEA INSURANCE. But when comparing it to its historical volatility, INTERNATIONAL ENERGY INSURANCE is 1.28 times less risky than GUINEA INSURANCE. It trades about 0.02 of its potential returns per unit of risk. GUINEA INSURANCE PLC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 29.00 in GUINEA INSURANCE PLC on September 2, 2024 and sell it today you would earn a total of 21.00 from holding GUINEA INSURANCE PLC or generate 72.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| GUINEA INSURANCE PLC |
INTERNATIONAL ENERGY and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and GUINEA INSURANCE
The main advantage of trading using opposite INTERNATIONAL ENERGY and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY 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.The idea behind INTERNATIONAL ENERGY INSURANCE and GUINEA INSURANCE PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GUINEA INSURANCE vs. BUA FOODS PLC | GUINEA INSURANCE vs. CONSOLIDATED HALLMARK INSURANCE | GUINEA INSURANCE vs. AXAMANSARD INSURANCE PLC | GUINEA INSURANCE vs. MULTIVERSE MINING AND |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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