Correlation Between UNION HOMES and CORNERSTONE INSURANCE
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By analyzing existing cross correlation between UNION HOMES REAL and CORNERSTONE INSURANCE PLC, you can compare the effects of market volatilities on UNION HOMES and CORNERSTONE 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 UNION HOMES with a short position of CORNERSTONE INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNION HOMES and CORNERSTONE INSURANCE.
Diversification Opportunities for UNION HOMES and CORNERSTONE INSURANCE
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNION and CORNERSTONE is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding UNION HOMES REAL and CORNERSTONE INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNERSTONE INSURANCE PLC and UNION HOMES 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 UNION HOMES REAL are associated (or correlated) with CORNERSTONE INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNERSTONE INSURANCE PLC has no effect on the direction of UNION HOMES i.e., UNION HOMES and CORNERSTONE INSURANCE go up and down completely randomly.
Pair Corralation between UNION HOMES and CORNERSTONE INSURANCE
Assuming the 90 days trading horizon UNION HOMES REAL is expected to generate 0.73 times more return on investment than CORNERSTONE INSURANCE. However, UNION HOMES REAL is 1.36 times less risky than CORNERSTONE INSURANCE. It trades about 0.39 of its potential returns per unit of risk. CORNERSTONE INSURANCE PLC is currently generating about 0.19 per unit of risk. If you would invest 5,025 in UNION HOMES REAL on April 26, 2025 and sell it today you would earn a total of 1,375 from holding UNION HOMES REAL or generate 27.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
UNION HOMES REAL vs. CORNERSTONE INSURANCE PLC
Performance |
Timeline |
UNION HOMES REAL |
CORNERSTONE INSURANCE PLC |
UNION HOMES and CORNERSTONE INSURANCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UNION HOMES and CORNERSTONE INSURANCE
The main advantage of trading using opposite UNION HOMES and CORNERSTONE INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNION HOMES position performs unexpectedly, CORNERSTONE 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 CORNERSTONE INSURANCE will offset losses from the drop in CORNERSTONE INSURANCE's long position.UNION HOMES vs. ECOBANK TRANSNATIONAL INCORPORATED | UNION HOMES vs. FIDELITY BANK PLC | UNION HOMES vs. CORONATION INSURANCE PLC | UNION HOMES vs. AFROMEDIA PLC |
CORNERSTONE INSURANCE vs. FIDELITY BANK PLC | CORNERSTONE INSURANCE vs. UNITED BANK FOR | CORNERSTONE INSURANCE vs. ZENITH BANK PLC | CORNERSTONE INSURANCE vs. UNION HOMES REAL |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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