Correlation Between TRANSCORP HOTELS and GUINEA INSURANCE
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By analyzing existing cross correlation between TRANSCORP HOTELS PLC and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on TRANSCORP HOTELS 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 TRANSCORP HOTELS with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRANSCORP HOTELS and GUINEA INSURANCE.
Diversification Opportunities for TRANSCORP HOTELS and GUINEA INSURANCE
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between TRANSCORP and GUINEA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding TRANSCORP HOTELS PLC 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 TRANSCORP HOTELS 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 TRANSCORP HOTELS PLC 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 TRANSCORP HOTELS i.e., TRANSCORP HOTELS and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between TRANSCORP HOTELS and GUINEA INSURANCE
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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRANSCORP HOTELS PLC vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| TRANSCORP HOTELS PLC |
| GUINEA INSURANCE PLC |
TRANSCORP HOTELS and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRANSCORP HOTELS and GUINEA INSURANCE
The main advantage of trading using opposite TRANSCORP HOTELS and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRANSCORP HOTELS 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.| TRANSCORP HOTELS vs. VETIVA BANKING ETF | TRANSCORP HOTELS vs. CONSOLIDATED HALLMARK INSURANCE | TRANSCORP HOTELS vs. FIDELITY BANK PLC | TRANSCORP HOTELS vs. GOLDLINK 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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