Correlation Between LIVINGTRUST MORTGAGE and GUINEA INSURANCE
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By analyzing existing cross correlation between LIVINGTRUST MORTGAGE BANK and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIVINGTRUST MORTGAGE and GUINEA INSURANCE.
Diversification Opportunities for LIVINGTRUST MORTGAGE and GUINEA INSURANCE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LIVINGTRUST and GUINEA is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding LIVINGTRUST MORTGAGE BANK 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 LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE BANK 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 LIVINGTRUST MORTGAGE i.e., LIVINGTRUST MORTGAGE and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between LIVINGTRUST MORTGAGE and GUINEA INSURANCE
Assuming the 90 days trading horizon LIVINGTRUST MORTGAGE BANK is expected to generate 41.05 times more return on investment than GUINEA INSURANCE. However, LIVINGTRUST MORTGAGE is 41.05 times more volatile than GUINEA INSURANCE PLC. It trades about 0.25 of its potential returns per unit of risk. GUINEA INSURANCE PLC is currently generating about 0.08 per unit of risk. If you would invest 158.00 in LIVINGTRUST MORTGAGE BANK on September 24, 2024 and sell it today you would earn a total of 172.00 from holding LIVINGTRUST MORTGAGE BANK or generate 108.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.72% |
| Values | Daily Returns |
LIVINGTRUST MORTGAGE BANK vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| LIVINGTRUST MORTGAGE BANK |
| GUINEA INSURANCE PLC |
LIVINGTRUST MORTGAGE and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIVINGTRUST MORTGAGE and GUINEA INSURANCE
The main advantage of trading using opposite LIVINGTRUST MORTGAGE and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIVINGTRUST MORTGAGE 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.| LIVINGTRUST MORTGAGE vs. ZENITH BANK PLC | LIVINGTRUST MORTGAGE vs. GUINEA INSURANCE PLC | LIVINGTRUST MORTGAGE vs. SECURE ELECTRONIC TECHNOLOGY | LIVINGTRUST MORTGAGE vs. SFS REAL ESTATE |
| GUINEA INSURANCE vs. ZENITH BANK PLC | GUINEA INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | GUINEA INSURANCE vs. SFS REAL ESTATE | GUINEA INSURANCE vs. CHELLARAMS 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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