Correlation Between TRANSCORP HOTELS and CORONATION INSURANCE
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By analyzing existing cross correlation between TRANSCORP HOTELS PLC and CORONATION INSURANCE PLC, you can compare the effects of market volatilities on TRANSCORP HOTELS 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 TRANSCORP HOTELS with a short position of CORONATION INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRANSCORP HOTELS and CORONATION INSURANCE.
Diversification Opportunities for TRANSCORP HOTELS and CORONATION INSURANCE
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TRANSCORP and CORONATION is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding TRANSCORP HOTELS PLC 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 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 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 TRANSCORP HOTELS i.e., TRANSCORP HOTELS and CORONATION INSURANCE go up and down completely randomly.
Pair Corralation between TRANSCORP HOTELS and CORONATION INSURANCE
Assuming the 90 days trading horizon TRANSCORP HOTELS PLC is expected to generate 0.64 times more return on investment than CORONATION INSURANCE. However, TRANSCORP HOTELS PLC is 1.55 times less risky than CORONATION INSURANCE. It trades about 0.22 of its potential returns per unit of risk. CORONATION INSURANCE PLC is currently generating about 0.09 per unit of risk. If you would invest 750.00 in TRANSCORP HOTELS PLC on February 3, 2025 and sell it today you would earn a total of 13,750 from holding TRANSCORP HOTELS PLC or generate 1833.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRANSCORP HOTELS PLC vs. CORONATION INSURANCE PLC
Performance |
| Timeline |
| TRANSCORP HOTELS PLC |
| CORONATION INSURANCE PLC |
TRANSCORP HOTELS and CORONATION INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRANSCORP HOTELS and CORONATION INSURANCE
The main advantage of trading using opposite TRANSCORP HOTELS and CORONATION INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRANSCORP HOTELS 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.| TRANSCORP HOTELS vs. NEM INSURANCE PLC | TRANSCORP HOTELS vs. ABC TRANSPORT PLC | TRANSCORP HOTELS vs. MULTIVERSE MINING AND | TRANSCORP HOTELS vs. DEAP CAPITAL MANAGEMENT |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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