Correlation Between AIICO INSURANCE and CORONATION INSURANCE
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By analyzing existing cross correlation between AIICO INSURANCE PLC and CORONATION INSURANCE PLC, you can compare the effects of market volatilities on AIICO INSURANCE and CORONATION 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 AIICO INSURANCE with a short position of CORONATION INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIICO INSURANCE and CORONATION INSURANCE.
Diversification Opportunities for AIICO INSURANCE and CORONATION INSURANCE
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AIICO and CORONATION is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding AIICO INSURANCE PLC and CORONATION INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORONATION INSURANCE PLC 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 CORONATION INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORONATION INSURANCE PLC has no effect on the direction of AIICO INSURANCE i.e., AIICO INSURANCE and CORONATION INSURANCE go up and down completely randomly.
Pair Corralation between AIICO INSURANCE and CORONATION INSURANCE
Assuming the 90 days trading horizon AIICO INSURANCE PLC is expected to generate 0.9 times more return on investment than CORONATION INSURANCE. However, AIICO INSURANCE PLC is 1.11 times less risky than CORONATION INSURANCE. It trades about 0.32 of its potential returns per unit of risk. CORONATION INSURANCE PLC is currently generating about 0.18 per unit of risk. If you would invest 160.00 in AIICO INSURANCE PLC on June 1, 2025 and sell it today you would earn a total of 244.00 from holding AIICO INSURANCE PLC or generate 152.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIICO INSURANCE PLC vs. CORONATION INSURANCE PLC
Performance |
| Timeline |
| AIICO INSURANCE PLC |
| CORONATION INSURANCE PLC |
AIICO INSURANCE and CORONATION INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIICO INSURANCE and CORONATION INSURANCE
The main advantage of trading using opposite AIICO INSURANCE and CORONATION INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIICO INSURANCE position performs unexpectedly, CORONATION 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 CORONATION INSURANCE will offset losses from the drop in CORONATION INSURANCE's long position.| AIICO INSURANCE vs. BUA FOODS PLC | AIICO INSURANCE vs. STERLING FINANCIAL HOLDINGS | AIICO INSURANCE vs. STACO INSURANCE PLC | AIICO INSURANCE vs. INDUSTRIAL MEDICAL GASES |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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