Correlation Between UNITY BANK and CORNERSTONE INSURANCE
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By analyzing existing cross correlation between UNITY BANK PLC and CORNERSTONE INSURANCE PLC, you can compare the effects of market volatilities on UNITY BANK and CORNERSTONE 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 UNITY BANK with a short position of CORNERSTONE INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITY BANK and CORNERSTONE INSURANCE.
Diversification Opportunities for UNITY BANK and CORNERSTONE INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNITY and CORNERSTONE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UNITY BANK PLC and CORNERSTONE INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNERSTONE INSURANCE PLC and UNITY 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 UNITY BANK PLC are associated (or correlated) with CORNERSTONE INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNERSTONE INSURANCE PLC has no effect on the direction of UNITY BANK i.e., UNITY BANK and CORNERSTONE INSURANCE go up and down completely randomly.
Pair Corralation between UNITY BANK and CORNERSTONE INSURANCE
Assuming the 90 days trading horizon UNITY BANK is expected to generate 1.4 times less return on investment than CORNERSTONE INSURANCE. But when comparing it to its historical volatility, UNITY BANK PLC is 1.01 times less risky than CORNERSTONE INSURANCE. It trades about 0.07 of its potential returns per unit of risk. CORNERSTONE INSURANCE PLC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 61.00 in CORNERSTONE INSURANCE PLC on November 7, 2024 and sell it today you would earn a total of 275.00 from holding CORNERSTONE INSURANCE PLC or generate 450.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
UNITY BANK PLC vs. CORNERSTONE INSURANCE PLC
Performance |
| Timeline |
| UNITY BANK PLC |
| CORNERSTONE INSURANCE PLC |
UNITY BANK and CORNERSTONE INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITY BANK and CORNERSTONE INSURANCE
The main advantage of trading using opposite UNITY BANK and CORNERSTONE INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITY BANK position performs unexpectedly, CORNERSTONE 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 CORNERSTONE INSURANCE will offset losses from the drop in CORNERSTONE INSURANCE's long position.| UNITY BANK vs. GUINEA INSURANCE PLC | UNITY BANK vs. SECURE ELECTRONIC TECHNOLOGY | UNITY BANK vs. VFD GROUP | UNITY BANK vs. IKEJA HOTELS PLC |
| CORNERSTONE INSURANCE vs. STACO INSURANCE PLC | CORNERSTONE INSURANCE vs. AFRICAN ALLIANCE INSURANCE | CORNERSTONE INSURANCE vs. ABC TRANSPORT PLC | CORNERSTONE 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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