Correlation Between KENYA RE and CIC INSURANCE
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By analyzing existing cross correlation between KENYA RE INSURANCE PORATION and CIC INSURANCE GROUP, you can compare the effects of market volatilities on KENYA RE and CIC 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 KENYA RE with a short position of CIC INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA RE and CIC INSURANCE.
Diversification Opportunities for KENYA RE and CIC INSURANCE
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between KENYA and CIC is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding KENYA RE INSURANCE PORATION and CIC INSURANCE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIC INSURANCE GROUP and KENYA RE 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 KENYA RE INSURANCE PORATION are associated (or correlated) with CIC INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIC INSURANCE GROUP has no effect on the direction of KENYA RE i.e., KENYA RE and CIC INSURANCE go up and down completely randomly.
Pair Corralation between KENYA RE and CIC INSURANCE
Assuming the 90 days trading horizon KENYA RE INSURANCE PORATION is expected to under-perform the CIC INSURANCE. In addition to that, KENYA RE is 1.28 times more volatile than CIC INSURANCE GROUP. It trades about -0.01 of its total potential returns per unit of risk. CIC INSURANCE GROUP is currently generating about 0.02 per unit of volatility. If you would invest 192.00 in CIC INSURANCE GROUP on September 3, 2024 and sell it today you would earn a total of 12.00 from holding CIC INSURANCE GROUP or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENYA RE INSURANCE PORATION vs. CIC INSURANCE GROUP
Performance |
| Timeline |
| KENYA RE INSURANCE |
| CIC INSURANCE GROUP |
KENYA RE and CIC INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA RE and CIC INSURANCE
The main advantage of trading using opposite KENYA RE and CIC INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA RE position performs unexpectedly, CIC 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 CIC INSURANCE will offset losses from the drop in CIC INSURANCE's long position.| KENYA RE vs. UCHUMI SUPERMARKET PLC | KENYA RE vs. CENTUM INVESTMENT PANY | KENYA RE vs. STANDARD CHARTERED BANK | KENYA RE vs. DIAMOND TRUST BANK |
| CIC INSURANCE vs. BRITISH AMERICAN TOBACCO | CIC INSURANCE vs. CARBACID INVESTMENTS LTD | CIC INSURANCE vs. KENYA RE INSURANCE PORATION | CIC INSURANCE vs. STANDARD CHARTERED BANK |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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