Correlation Between AIICO INSURANCE and SFS REAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between AIICO INSURANCE PLC and SFS REAL ESTATE, you can compare the effects of market volatilities on AIICO INSURANCE and SFS REAL 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 SFS REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIICO INSURANCE and SFS REAL.
Diversification Opportunities for AIICO INSURANCE and SFS REAL
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AIICO and SFS is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AIICO INSURANCE PLC and SFS REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFS REAL ESTATE 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 SFS REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFS REAL ESTATE has no effect on the direction of AIICO INSURANCE i.e., AIICO INSURANCE and SFS REAL go up and down completely randomly.
Pair Corralation between AIICO INSURANCE and SFS REAL
Assuming the 90 days trading horizon AIICO INSURANCE PLC is expected to generate 1.75 times more return on investment than SFS REAL. However, AIICO INSURANCE is 1.75 times more volatile than SFS REAL ESTATE. It trades about 0.18 of its potential returns per unit of risk. SFS REAL ESTATE is currently generating about 0.18 per unit of risk. If you would invest 161.00 in AIICO INSURANCE PLC on April 27, 2025 and sell it today you would earn a total of 61.00 from holding AIICO INSURANCE PLC or generate 37.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIICO INSURANCE PLC vs. SFS REAL ESTATE
Performance |
| Timeline |
| AIICO INSURANCE PLC |
| SFS REAL ESTATE |
AIICO INSURANCE and SFS REAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIICO INSURANCE and SFS REAL
The main advantage of trading using opposite AIICO INSURANCE and SFS REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIICO INSURANCE position performs unexpectedly, SFS REAL 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 SFS REAL will offset losses from the drop in SFS REAL's long position.| AIICO INSURANCE vs. WEMA BANK PLC | AIICO INSURANCE vs. BUA FOODS PLC | AIICO INSURANCE vs. CORNERSTONE INSURANCE PLC | AIICO INSURANCE vs. CORONATION INSURANCE PLC |
| SFS REAL vs. AFRICAN ALLIANCE INSURANCE | SFS REAL vs. FIDELITY BANK PLC | SFS REAL vs. UNIVERSAL INSURANCE PANY | SFS REAL vs. INDUSTRIAL MEDICAL GASES |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |