Correlation Between CORONATION INSURANCE and UNIVERSAL INSURANCE
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and UNIVERSAL INSURANCE PANY, you can compare the effects of market volatilities on CORONATION INSURANCE and UNIVERSAL 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 UNIVERSAL INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and UNIVERSAL INSURANCE.
Diversification Opportunities for CORONATION INSURANCE and UNIVERSAL INSURANCE
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CORONATION and UNIVERSAL is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC and UNIVERSAL INSURANCE PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIVERSAL INSURANCE PANY 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 UNIVERSAL INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIVERSAL INSURANCE PANY has no effect on the direction of CORONATION INSURANCE i.e., CORONATION INSURANCE and UNIVERSAL INSURANCE go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and UNIVERSAL INSURANCE
Assuming the 90 days trading horizon CORONATION INSURANCE PLC is expected to generate 1.13 times more return on investment than UNIVERSAL INSURANCE. However, CORONATION INSURANCE is 1.13 times more volatile than UNIVERSAL INSURANCE PANY. It trades about 0.14 of its potential returns per unit of risk. UNIVERSAL INSURANCE PANY is currently generating about -0.04 per unit of risk. If you would invest 77.00 in CORONATION INSURANCE PLC on August 31, 2024 and sell it today you would earn a total of 26.00 from holding CORONATION INSURANCE PLC or generate 33.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORONATION INSURANCE PLC vs. UNIVERSAL INSURANCE PANY
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| UNIVERSAL INSURANCE PANY |
CORONATION INSURANCE and UNIVERSAL INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and UNIVERSAL INSURANCE
The main advantage of trading using opposite CORONATION INSURANCE and UNIVERSAL INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, UNIVERSAL 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 UNIVERSAL INSURANCE will offset losses from the drop in UNIVERSAL INSURANCE's long position.| CORONATION INSURANCE vs. CORNERSTONE INSURANCE PLC | CORONATION INSURANCE vs. ASO SAVINGS AND | CORONATION INSURANCE vs. AXAMANSARD INSURANCE PLC | CORONATION INSURANCE vs. GUINEA INSURANCE 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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