Correlation Between GUINEA INSURANCE and SECURE ELECTRONIC
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and SECURE ELECTRONIC TECHNOLOGY, you can compare the effects of market volatilities on GUINEA INSURANCE and SECURE ELECTRONIC 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 SECURE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and SECURE ELECTRONIC.
Diversification Opportunities for GUINEA INSURANCE and SECURE ELECTRONIC
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GUINEA and SECURE is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and SECURE ELECTRONIC TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURE ELECTRONIC 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 SECURE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURE ELECTRONIC has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and SECURE ELECTRONIC go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and SECURE ELECTRONIC
Assuming the 90 days trading horizon GUINEA INSURANCE PLC is expected to generate 1.06 times more return on investment than SECURE ELECTRONIC. However, GUINEA INSURANCE is 1.06 times more volatile than SECURE ELECTRONIC TECHNOLOGY. It trades about 0.26 of its potential returns per unit of risk. SECURE ELECTRONIC TECHNOLOGY is currently generating about -0.05 per unit of risk. If you would invest 65.00 in GUINEA INSURANCE PLC on March 27, 2025 and sell it today you would earn a total of 16.00 from holding GUINEA INSURANCE PLC or generate 24.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. SECURE ELECTRONIC TECHNOLOGY
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| SECURE ELECTRONIC |
GUINEA INSURANCE and SECURE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and SECURE ELECTRONIC
The main advantage of trading using opposite GUINEA INSURANCE and SECURE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, SECURE ELECTRONIC 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 SECURE ELECTRONIC will offset losses from the drop in SECURE ELECTRONIC's long position.| GUINEA INSURANCE vs. CORONATION INSURANCE PLC | GUINEA INSURANCE vs. UNION HOMES REAL | GUINEA INSURANCE vs. SOVEREIGN TRUST INSURANCE | GUINEA INSURANCE vs. BUA FOODS PLC |
| SECURE ELECTRONIC vs. GUINEA INSURANCE PLC | SECURE ELECTRONIC vs. ALUMINIUM EXTRUSION IND | SECURE ELECTRONIC vs. VITAFOAM NIGERIA PLC | SECURE ELECTRONIC vs. SFS REAL ESTATE |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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