Correlation Between GUINEA INSURANCE and ABC TRANSPORT
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and ABC TRANSPORT PLC, you can compare the effects of market volatilities on GUINEA INSURANCE and ABC TRANSPORT 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 GUINEA INSURANCE with a short position of ABC TRANSPORT. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and ABC TRANSPORT.
Diversification Opportunities for GUINEA INSURANCE and ABC TRANSPORT
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GUINEA and ABC is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and ABC TRANSPORT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABC TRANSPORT PLC and GUINEA 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 GUINEA INSURANCE PLC are associated (or correlated) with ABC TRANSPORT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABC TRANSPORT PLC has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and ABC TRANSPORT go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and ABC TRANSPORT
Assuming the 90 days trading horizon GUINEA INSURANCE PLC is expected to generate 2.3 times more return on investment than ABC TRANSPORT. However, GUINEA INSURANCE is 2.3 times more volatile than ABC TRANSPORT PLC. It trades about -0.09 of its potential returns per unit of risk. ABC TRANSPORT PLC is currently generating about -0.2 per unit of risk. If you would invest 153.00 in GUINEA INSURANCE PLC on August 31, 2025 and sell it today you would lose (43.00) from holding GUINEA INSURANCE PLC or give up 28.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. ABC TRANSPORT PLC
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| ABC TRANSPORT PLC |
GUINEA INSURANCE and ABC TRANSPORT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and ABC TRANSPORT
The main advantage of trading using opposite GUINEA INSURANCE and ABC TRANSPORT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, ABC TRANSPORT 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 ABC TRANSPORT will offset losses from the drop in ABC TRANSPORT's long position.| GUINEA INSURANCE vs. VETIVA SUMER GOODS | GUINEA INSURANCE vs. FORTIS GLOBAL INSURANCE | GUINEA INSURANCE vs. NEM INSURANCE PLC | GUINEA INSURANCE vs. JAIZ BANK PLC |
| ABC TRANSPORT vs. SECURE ELECTRONIC TECHNOLOGY | ABC TRANSPORT vs. AIICO INSURANCE PLC | ABC TRANSPORT vs. VETIVA BANKING ETF | ABC TRANSPORT vs. CORNERSTONE INSURANCE 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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