Correlation Between UNITED BANK and GOLDLINK INSURANCE
Specify exactly 2 symbols:
By analyzing existing cross correlation between UNITED BANK FOR and GOLDLINK INSURANCE PLC, you can compare the effects of market volatilities on UNITED BANK and GOLDLINK 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 UNITED BANK with a short position of GOLDLINK INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITED BANK and GOLDLINK INSURANCE.
Diversification Opportunities for UNITED BANK and GOLDLINK INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNITED and GOLDLINK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UNITED BANK FOR and GOLDLINK INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDLINK INSURANCE PLC and UNITED BANK 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 UNITED BANK FOR are associated (or correlated) with GOLDLINK INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDLINK INSURANCE PLC has no effect on the direction of UNITED BANK i.e., UNITED BANK and GOLDLINK INSURANCE go up and down completely randomly.
Pair Corralation between UNITED BANK and GOLDLINK INSURANCE
If you would invest 2,190 in UNITED BANK FOR on September 2, 2024 and sell it today you would earn a total of 1,080 from holding UNITED BANK FOR or generate 49.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNITED BANK FOR vs. GOLDLINK INSURANCE PLC
Performance |
| Timeline |
| UNITED BANK FOR |
| GOLDLINK INSURANCE PLC |
UNITED BANK and GOLDLINK INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITED BANK and GOLDLINK INSURANCE
The main advantage of trading using opposite UNITED BANK and GOLDLINK INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED BANK position performs unexpectedly, GOLDLINK 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 GOLDLINK INSURANCE will offset losses from the drop in GOLDLINK INSURANCE's long position.The idea behind UNITED BANK FOR and GOLDLINK 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.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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |