Correlation Between AIICO INSURANCE and SECURE ELECTRONIC
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By analyzing existing cross correlation between AIICO INSURANCE PLC and SECURE ELECTRONIC TECHNOLOGY, you can compare the effects of market volatilities on AIICO INSURANCE and SECURE ELECTRONIC 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 AIICO INSURANCE with a short position of SECURE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIICO INSURANCE and SECURE ELECTRONIC.
Diversification Opportunities for AIICO INSURANCE and SECURE ELECTRONIC
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AIICO and SECURE is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding AIICO INSURANCE PLC and SECURE ELECTRONIC TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURE ELECTRONIC and AIICO 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 AIICO INSURANCE PLC are associated (or correlated) with SECURE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURE ELECTRONIC has no effect on the direction of AIICO INSURANCE i.e., AIICO INSURANCE and SECURE ELECTRONIC go up and down completely randomly.
Pair Corralation between AIICO INSURANCE and SECURE ELECTRONIC
Assuming the 90 days trading horizon AIICO INSURANCE is expected to generate 1.62 times less return on investment than SECURE ELECTRONIC. But when comparing it to its historical volatility, AIICO INSURANCE PLC is 1.5 times less risky than SECURE ELECTRONIC. It trades about 0.05 of its potential returns per unit of risk. SECURE ELECTRONIC TECHNOLOGY is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 55.00 in SECURE ELECTRONIC TECHNOLOGY on March 24, 2025 and sell it today you would earn a total of 5.00 from holding SECURE ELECTRONIC TECHNOLOGY or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIICO INSURANCE PLC vs. SECURE ELECTRONIC TECHNOLOGY
Performance |
| Timeline |
| AIICO INSURANCE PLC |
| SECURE ELECTRONIC |
AIICO INSURANCE and SECURE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIICO INSURANCE and SECURE ELECTRONIC
The main advantage of trading using opposite AIICO INSURANCE and SECURE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIICO INSURANCE position performs unexpectedly, SECURE ELECTRONIC 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 SECURE ELECTRONIC will offset losses from the drop in SECURE ELECTRONIC's long position.| AIICO INSURANCE vs. C I LEASING | AIICO INSURANCE vs. JAIZ BANK PLC | AIICO INSURANCE vs. CUSTODIAN INVESTMENT PLC | AIICO INSURANCE vs. INTERNATIONAL ENERGY INSURANCE |
| SECURE ELECTRONIC vs. AFRICAN ALLIANCE INSURANCE | SECURE ELECTRONIC vs. NEM INSURANCE PLC | SECURE ELECTRONIC vs. CORNERSTONE INSURANCE PLC | SECURE ELECTRONIC vs. WEMA BANK PLC |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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