Correlation Between CORONATION INSURANCE and AIICO INSURANCE
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and AIICO INSURANCE PLC, you can compare the effects of market volatilities on CORONATION INSURANCE and AIICO 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 CORONATION INSURANCE with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and AIICO INSURANCE.
Diversification Opportunities for CORONATION INSURANCE and AIICO INSURANCE
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CORONATION and AIICO is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC and AIICO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIICO INSURANCE PLC and CORONATION 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 CORONATION INSURANCE PLC are associated (or correlated) with AIICO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIICO INSURANCE PLC has no effect on the direction of CORONATION INSURANCE i.e., CORONATION INSURANCE and AIICO INSURANCE go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and AIICO INSURANCE
Assuming the 90 days trading horizon CORONATION INSURANCE PLC is expected to generate 1.19 times more return on investment than AIICO INSURANCE. However, CORONATION INSURANCE is 1.19 times more volatile than AIICO INSURANCE PLC. It trades about 0.1 of its potential returns per unit of risk. AIICO INSURANCE PLC is currently generating about 0.12 per unit of risk. If you would invest 61.00 in CORONATION INSURANCE PLC on May 28, 2025 and sell it today you would earn a total of 281.00 from holding CORONATION INSURANCE PLC or generate 460.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORONATION INSURANCE PLC vs. AIICO INSURANCE PLC
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| AIICO INSURANCE PLC |
CORONATION INSURANCE and AIICO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and AIICO INSURANCE
The main advantage of trading using opposite CORONATION INSURANCE and AIICO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, AIICO 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 AIICO INSURANCE will offset losses from the drop in AIICO INSURANCE's long position.| CORONATION INSURANCE vs. GUINEA INSURANCE PLC | CORONATION INSURANCE vs. ALUMINIUM EXTRUSION IND | CORONATION INSURANCE vs. VITAFOAM NIGERIA PLC | CORONATION INSURANCE vs. JAPAUL OIL MARITIME |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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