Correlation Between GUINEA INSURANCE and CORONATION INSURANCE
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By analyzing existing cross correlation between GUINEA INSURANCE PLC and CORONATION INSURANCE PLC, you can compare the effects of market volatilities on GUINEA 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 GUINEA INSURANCE with a short position of CORONATION INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and CORONATION INSURANCE.
Diversification Opportunities for GUINEA INSURANCE and CORONATION INSURANCE
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GUINEA and CORONATION is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA 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 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 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 GUINEA INSURANCE i.e., GUINEA INSURANCE and CORONATION INSURANCE go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and CORONATION INSURANCE
Assuming the 90 days trading horizon GUINEA INSURANCE PLC is expected to generate 1.07 times more return on investment than CORONATION INSURANCE. However, GUINEA INSURANCE is 1.07 times more volatile than CORONATION INSURANCE PLC. It trades about 0.24 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 68.00 in GUINEA INSURANCE PLC on June 10, 2025 and sell it today you would earn a total of 87.00 from holding GUINEA INSURANCE PLC or generate 127.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUINEA INSURANCE PLC vs. CORONATION INSURANCE PLC
Performance |
| Timeline |
| GUINEA INSURANCE PLC |
| CORONATION INSURANCE PLC |
GUINEA INSURANCE and CORONATION INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINEA INSURANCE and CORONATION INSURANCE
The main advantage of trading using opposite GUINEA INSURANCE and CORONATION INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA 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.| GUINEA INSURANCE vs. ALUMINIUM EXTRUSION IND | GUINEA INSURANCE vs. VITAFOAM NIGERIA PLC | GUINEA INSURANCE vs. JAPAUL OIL MARITIME | GUINEA INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY |
| CORONATION INSURANCE vs. GUINEA INSURANCE PLC | CORONATION INSURANCE vs. ALUMINIUM EXTRUSION IND | CORONATION INSURANCE vs. VITAFOAM NIGERIA PLC | CORONATION INSURANCE 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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