Correlation Between CORONATION INSURANCE and FIDSON HEALTHCARE
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and FIDSON HEALTHCARE PLC, you can compare the effects of market volatilities on CORONATION INSURANCE and FIDSON HEALTHCARE 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 CORONATION INSURANCE with a short position of FIDSON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and FIDSON HEALTHCARE.
Diversification Opportunities for CORONATION INSURANCE and FIDSON HEALTHCARE
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CORONATION and FIDSON is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC and FIDSON HEALTHCARE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDSON HEALTHCARE PLC and CORONATION INSURANCE 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 CORONATION INSURANCE PLC are associated (or correlated) with FIDSON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDSON HEALTHCARE PLC has no effect on the direction of CORONATION INSURANCE i.e., CORONATION INSURANCE and FIDSON HEALTHCARE go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and FIDSON HEALTHCARE
Assuming the 90 days trading horizon CORONATION INSURANCE PLC is expected to generate 1.57 times more return on investment than FIDSON HEALTHCARE. However, CORONATION INSURANCE is 1.57 times more volatile than FIDSON HEALTHCARE PLC. It trades about 0.06 of its potential returns per unit of risk. FIDSON HEALTHCARE PLC is currently generating about -0.01 per unit of risk. If you would invest 65.00 in CORONATION INSURANCE PLC on August 24, 2024 and sell it today you would earn a total of 36.00 from holding CORONATION INSURANCE PLC or generate 55.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
CORONATION INSURANCE PLC vs. FIDSON HEALTHCARE PLC
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| FIDSON HEALTHCARE PLC |
CORONATION INSURANCE and FIDSON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and FIDSON HEALTHCARE
The main advantage of trading using opposite CORONATION INSURANCE and FIDSON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, FIDSON HEALTHCARE 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 FIDSON HEALTHCARE will offset losses from the drop in FIDSON HEALTHCARE's long position.| CORONATION INSURANCE vs. GUINEA INSURANCE PLC | CORONATION INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | CORONATION INSURANCE vs. IKEJA HOTELS PLC | CORONATION INSURANCE vs. AFROMEDIA PLC |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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