Correlation Between INTERNATIONAL ENERGY and GOLDEN GUINEA
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By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and GOLDEN GUINEA BREWERIES, you can compare the effects of market volatilities on INTERNATIONAL ENERGY and GOLDEN GUINEA 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 INTERNATIONAL ENERGY with a short position of GOLDEN GUINEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and GOLDEN GUINEA.
Diversification Opportunities for INTERNATIONAL ENERGY and GOLDEN GUINEA
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INTERNATIONAL and GOLDEN is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE and GOLDEN GUINEA BREWERIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDEN GUINEA BREWERIES and INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY INSURANCE are associated (or correlated) with GOLDEN GUINEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDEN GUINEA BREWERIES has no effect on the direction of INTERNATIONAL ENERGY i.e., INTERNATIONAL ENERGY and GOLDEN GUINEA go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and GOLDEN GUINEA
Assuming the 90 days trading horizon INTERNATIONAL ENERGY INSURANCE is expected to generate 236.73 times more return on investment than GOLDEN GUINEA. However, INTERNATIONAL ENERGY is 236.73 times more volatile than GOLDEN GUINEA BREWERIES. It trades about 0.18 of its potential returns per unit of risk. GOLDEN GUINEA BREWERIES is currently generating about 0.13 per unit of risk. If you would invest 148.00 in INTERNATIONAL ENERGY INSURANCE on April 17, 2025 and sell it today you would earn a total of 72.00 from holding INTERNATIONAL ENERGY INSURANCE or generate 48.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. GOLDEN GUINEA BREWERIES
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| GOLDEN GUINEA BREWERIES |
INTERNATIONAL ENERGY and GOLDEN GUINEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and GOLDEN GUINEA
The main advantage of trading using opposite INTERNATIONAL ENERGY and GOLDEN GUINEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY position performs unexpectedly, GOLDEN GUINEA 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 GOLDEN GUINEA will offset losses from the drop in GOLDEN GUINEA's long position.| INTERNATIONAL ENERGY vs. GUINEA INSURANCE PLC | INTERNATIONAL ENERGY vs. ALUMINIUM EXTRUSION IND | INTERNATIONAL ENERGY vs. VITAFOAM NIGERIA PLC | INTERNATIONAL ENERGY vs. JAPAUL OIL MARITIME |
| GOLDEN GUINEA vs. GUINEA INSURANCE PLC | GOLDEN GUINEA vs. ALUMINIUM EXTRUSION IND | GOLDEN GUINEA vs. VITAFOAM NIGERIA PLC | GOLDEN GUINEA vs. JAPAUL OIL MARITIME |
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