Correlation Between CORONATION INSURANCE and NIGERIAN EXCHANGE
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and NIGERIAN EXCHANGE GROUP, you can compare the effects of market volatilities on CORONATION INSURANCE and NIGERIAN EXCHANGE 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 NIGERIAN EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and NIGERIAN EXCHANGE.
Diversification Opportunities for CORONATION INSURANCE and NIGERIAN EXCHANGE
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CORONATION and NIGERIAN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC and NIGERIAN EXCHANGE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGERIAN EXCHANGE 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 NIGERIAN EXCHANGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGERIAN EXCHANGE has no effect on the direction of CORONATION INSURANCE i.e., CORONATION INSURANCE and NIGERIAN EXCHANGE go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and NIGERIAN EXCHANGE
Assuming the 90 days trading horizon CORONATION INSURANCE PLC is expected to generate 1.49 times more return on investment than NIGERIAN EXCHANGE. However, CORONATION INSURANCE is 1.49 times more volatile than NIGERIAN EXCHANGE GROUP. It trades about 0.1 of its potential returns per unit of risk. NIGERIAN EXCHANGE GROUP is currently generating about 0.03 per unit of risk. If you would invest 44.00 in CORONATION INSURANCE PLC on January 29, 2025 and sell it today you would earn a total of 176.00 from holding CORONATION INSURANCE PLC or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORONATION INSURANCE PLC vs. NIGERIAN EXCHANGE GROUP
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| NIGERIAN EXCHANGE |
CORONATION INSURANCE and NIGERIAN EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and NIGERIAN EXCHANGE
The main advantage of trading using opposite CORONATION INSURANCE and NIGERIAN EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, NIGERIAN EXCHANGE 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 NIGERIAN EXCHANGE will offset losses from the drop in NIGERIAN EXCHANGE's long position.| CORONATION INSURANCE vs. GUINEA INSURANCE PLC | CORONATION INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | CORONATION INSURANCE vs. VETIVA S P | 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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