Correlation Between CORONATION INSURANCE and GOLDLINK INSURANCE
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and GOLDLINK INSURANCE PLC, you can compare the effects of market volatilities on CORONATION INSURANCE 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 CORONATION INSURANCE with a short position of GOLDLINK INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and GOLDLINK INSURANCE.
Diversification Opportunities for CORONATION INSURANCE and GOLDLINK INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CORONATION and GOLDLINK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC 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 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 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 CORONATION INSURANCE i.e., CORONATION INSURANCE and GOLDLINK INSURANCE go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and GOLDLINK INSURANCE
If you would invest 71.00 in CORONATION INSURANCE PLC on September 2, 2024 and sell it today you would earn a total of 32.00 from holding CORONATION INSURANCE PLC or generate 45.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORONATION INSURANCE PLC vs. GOLDLINK INSURANCE PLC
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| GOLDLINK INSURANCE PLC |
CORONATION INSURANCE and GOLDLINK INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and GOLDLINK INSURANCE
The main advantage of trading using opposite CORONATION INSURANCE and GOLDLINK INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE 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 CORONATION INSURANCE PLC 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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