Correlation Between SECURE ELECTRONIC and CORNERSTONE INSURANCE
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By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and CORNERSTONE INSURANCE PLC, you can compare the effects of market volatilities on SECURE ELECTRONIC 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 SECURE ELECTRONIC with a short position of CORNERSTONE INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and CORNERSTONE INSURANCE.
Diversification Opportunities for SECURE ELECTRONIC and CORNERSTONE INSURANCE
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SECURE and CORNERSTONE is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY 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 SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY 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 SECURE ELECTRONIC i.e., SECURE ELECTRONIC and CORNERSTONE INSURANCE go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and CORNERSTONE INSURANCE
Assuming the 90 days trading horizon SECURE ELECTRONIC is expected to generate 1.15 times less return on investment than CORNERSTONE INSURANCE. In addition to that, SECURE ELECTRONIC is 1.12 times more volatile than CORNERSTONE INSURANCE PLC. It trades about 0.08 of its total potential returns per unit of risk. CORNERSTONE INSURANCE PLC is currently generating about 0.1 per unit of volatility. If you would invest 63.00 in CORNERSTONE INSURANCE PLC on October 25, 2024 and sell it today you would earn a total of 308.00 from holding CORNERSTONE INSURANCE PLC or generate 488.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.53% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. CORNERSTONE INSURANCE PLC
Performance |
| Timeline |
| SECURE ELECTRONIC |
| CORNERSTONE INSURANCE PLC |
SECURE ELECTRONIC and CORNERSTONE INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and CORNERSTONE INSURANCE
The main advantage of trading using opposite SECURE ELECTRONIC and CORNERSTONE INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC 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.| SECURE ELECTRONIC vs. ABC TRANSPORT PLC | SECURE ELECTRONIC vs. INTERNATIONAL BREWERIES PLC | SECURE ELECTRONIC vs. JAIZ BANK PLC | SECURE ELECTRONIC vs. NEM 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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