Correlation Between TOTALENERGIES MARKETING and GUINEA INSURANCE
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By analyzing existing cross correlation between TOTALENERGIES MARKETING NIGERIA and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTALENERGIES MARKETING and GUINEA INSURANCE.
Diversification Opportunities for TOTALENERGIES MARKETING and GUINEA INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TOTALENERGIES and GUINEA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TOTALENERGIES MARKETING NIGERI 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 TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING NIGERIA 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 TOTALENERGIES MARKETING i.e., TOTALENERGIES MARKETING and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between TOTALENERGIES MARKETING and GUINEA INSURANCE
Assuming the 90 days trading horizon TOTALENERGIES MARKETING NIGERIA is expected to generate 0.39 times more return on investment than GUINEA INSURANCE. However, TOTALENERGIES MARKETING NIGERIA is 2.57 times less risky than GUINEA INSURANCE. It trades about 0.16 of its potential returns per unit of risk. GUINEA INSURANCE PLC is currently generating about 0.04 per unit of risk. If you would invest 35,722 in TOTALENERGIES MARKETING NIGERIA on September 3, 2024 and sell it today you would earn a total of 31,668 from holding TOTALENERGIES MARKETING NIGERIA or generate 88.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOTALENERGIES MARKETING NIGERI vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| TOTALENERGIES MARKETING |
| GUINEA INSURANCE PLC |
TOTALENERGIES MARKETING and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOTALENERGIES MARKETING and GUINEA INSURANCE
The main advantage of trading using opposite TOTALENERGIES MARKETING and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTALENERGIES MARKETING 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.The idea behind TOTALENERGIES MARKETING NIGERIA and GUINEA INSURANCE PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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