Correlation Between GUINEA INSURANCE and INTERNATIONAL ENERGY
Specify exactly 2 symbols:
By analyzing existing cross correlation between GUINEA INSURANCE PLC and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on GUINEA INSURANCE and INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and INTERNATIONAL ENERGY.
Diversification Opportunities for GUINEA INSURANCE and INTERNATIONAL ENERGY
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GUINEA and INTERNATIONAL is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and INTERNATIONAL ENERGY
Assuming the 90 days trading horizon GUINEA INSURANCE PLC is expected to generate 1.19 times more return on investment than INTERNATIONAL ENERGY. However, GUINEA INSURANCE is 1.19 times more volatile than INTERNATIONAL ENERGY INSURANCE. It trades about 0.16 of its potential returns per unit of risk. INTERNATIONAL ENERGY INSURANCE is currently generating about 0.17 per unit of risk. If you would invest 68.00 in GUINEA INSURANCE PLC on March 27, 2025 and sell it today you would earn a total of 21.00 from holding GUINEA INSURANCE PLC or generate 30.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| INTERNATIONAL ENERGY |
GUINEA INSURANCE and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and INTERNATIONAL ENERGY
The main advantage of trading using opposite GUINEA INSURANCE and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY will offset losses from the drop in INTERNATIONAL ENERGY's long position.| GUINEA INSURANCE vs. TRANSCORP HOTELS PLC | GUINEA INSURANCE vs. CORONATION INSURANCE PLC | GUINEA INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | GUINEA INSURANCE vs. MULTI TREX INTEGRATED FOODS |
| INTERNATIONAL ENERGY vs. ZENITH BANK PLC | INTERNATIONAL ENERGY vs. SECURE ELECTRONIC TECHNOLOGY | INTERNATIONAL ENERGY vs. FIDSON HEALTHCARE PLC | INTERNATIONAL ENERGY vs. UNIVERSAL INSURANCE PANY |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |