Correlation Between SECURE ELECTRONIC and GUINEA INSURANCE
Specify exactly 2 symbols:
By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on SECURE ELECTRONIC 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 SECURE ELECTRONIC with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and GUINEA INSURANCE.
Diversification Opportunities for SECURE ELECTRONIC and GUINEA INSURANCE
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SECURE and GUINEA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY 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 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 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 SECURE ELECTRONIC i.e., SECURE ELECTRONIC and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and GUINEA INSURANCE
Assuming the 90 days trading horizon SECURE ELECTRONIC TECHNOLOGY is expected to under-perform the GUINEA INSURANCE. But the stock apears to be less risky and, when comparing its historical volatility, SECURE ELECTRONIC TECHNOLOGY is 1.31 times less risky than GUINEA INSURANCE. The stock trades about -0.12 of its potential returns per unit of risk. The GUINEA INSURANCE PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 49.00 in GUINEA INSURANCE PLC on August 28, 2024 and sell it today you would earn a total of 1.00 from holding GUINEA INSURANCE PLC or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| SECURE ELECTRONIC |
| GUINEA INSURANCE PLC |
SECURE ELECTRONIC and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and GUINEA INSURANCE
The main advantage of trading using opposite SECURE ELECTRONIC and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC 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.| SECURE ELECTRONIC vs. GUINEA INSURANCE PLC | SECURE ELECTRONIC vs. MEYER PLC | SECURE ELECTRONIC vs. VETIVA INDUSTRIAL ETF |
| GUINEA INSURANCE vs. MULTIVERSE MINING AND | GUINEA INSURANCE vs. NOTORE CHEMICAL IND | GUINEA INSURANCE vs. BUA FOODS PLC | GUINEA INSURANCE vs. INDUSTRIAL MEDICAL GASES |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |