Correlation Between AIICO INSURANCE and VFD GROUP
Specify exactly 2 symbols:
By analyzing existing cross correlation between AIICO INSURANCE PLC and VFD GROUP, you can compare the effects of market volatilities on AIICO INSURANCE and VFD GROUP 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 VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIICO INSURANCE and VFD GROUP.
Diversification Opportunities for AIICO INSURANCE and VFD GROUP
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIICO and VFD is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding AIICO INSURANCE PLC and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP 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 VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of AIICO INSURANCE i.e., AIICO INSURANCE and VFD GROUP go up and down completely randomly.
Pair Corralation between AIICO INSURANCE and VFD GROUP
Assuming the 90 days trading horizon AIICO INSURANCE PLC is expected to generate 0.27 times more return on investment than VFD GROUP. However, AIICO INSURANCE PLC is 3.66 times less risky than VFD GROUP. It trades about 0.19 of its potential returns per unit of risk. VFD GROUP is currently generating about -0.14 per unit of risk. If you would invest 164.00 in AIICO INSURANCE PLC on April 21, 2025 and sell it today you would earn a total of 63.00 from holding AIICO INSURANCE PLC or generate 38.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIICO INSURANCE PLC vs. VFD GROUP
Performance |
| Timeline |
| AIICO INSURANCE PLC |
| VFD GROUP |
AIICO INSURANCE and VFD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIICO INSURANCE and VFD GROUP
The main advantage of trading using opposite AIICO INSURANCE and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIICO INSURANCE position performs unexpectedly, VFD GROUP 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 VFD GROUP will offset losses from the drop in VFD GROUP's long position.| AIICO INSURANCE vs. WEMA BANK PLC | AIICO INSURANCE vs. UNITY BANK PLC | AIICO INSURANCE vs. STERLING FINANCIAL HOLDINGS | AIICO INSURANCE vs. IKEJA HOTELS PLC |
| VFD GROUP vs. GUINEA INSURANCE PLC | VFD GROUP vs. ALUMINIUM EXTRUSION IND | VFD GROUP vs. VITAFOAM NIGERIA PLC | VFD GROUP vs. JAPAUL OIL MARITIME |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |