Correlation Between NPF MICRO and CORONATION INSURANCE
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By analyzing existing cross correlation between NPF MICRO FINANCE and CORONATION INSURANCE PLC, you can compare the effects of market volatilities on NPF MICRO and CORONATION 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 NPF MICRO with a short position of CORONATION INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NPF MICRO and CORONATION INSURANCE.
Diversification Opportunities for NPF MICRO and CORONATION INSURANCE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NPF and CORONATION is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding NPF MICRO FINANCE and CORONATION INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORONATION INSURANCE PLC and NPF MICRO 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 NPF MICRO FINANCE are associated (or correlated) with CORONATION INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORONATION INSURANCE PLC has no effect on the direction of NPF MICRO i.e., NPF MICRO and CORONATION INSURANCE go up and down completely randomly.
Pair Corralation between NPF MICRO and CORONATION INSURANCE
Assuming the 90 days trading horizon NPF MICRO FINANCE is expected to under-perform the CORONATION INSURANCE. But the stock apears to be less risky and, when comparing its historical volatility, NPF MICRO FINANCE is 1.37 times less risky than CORONATION INSURANCE. The stock trades about -0.03 of its potential returns per unit of risk. The CORONATION INSURANCE PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 71.00 in CORONATION INSURANCE PLC on September 2, 2024 and sell it today you would earn a total of 32.00 from holding CORONATION INSURANCE PLC or generate 45.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NPF MICRO FINANCE vs. CORONATION INSURANCE PLC
Performance |
| Timeline |
| NPF MICRO FINANCE |
| CORONATION INSURANCE PLC |
NPF MICRO and CORONATION INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NPF MICRO and CORONATION INSURANCE
The main advantage of trading using opposite NPF MICRO and CORONATION INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NPF MICRO position performs unexpectedly, CORONATION 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 CORONATION INSURANCE will offset losses from the drop in CORONATION INSURANCE's long position.| NPF MICRO vs. CORONATION INSURANCE PLC | NPF MICRO vs. JAIZ BANK PLC | NPF MICRO vs. CORNERSTONE INSURANCE PLC | NPF MICRO vs. AIICO INSURANCE 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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