Correlation Between CORONATION INSURANCE and CUSTODIAN INVESTMENT
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and CUSTODIAN INVESTMENT PLC, you can compare the effects of market volatilities on CORONATION INSURANCE and CUSTODIAN INVESTMENT 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 CUSTODIAN INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and CUSTODIAN INVESTMENT.
Diversification Opportunities for CORONATION INSURANCE and CUSTODIAN INVESTMENT
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CORONATION and CUSTODIAN is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC and CUSTODIAN INVESTMENT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUSTODIAN INVESTMENT 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 CUSTODIAN INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUSTODIAN INVESTMENT PLC has no effect on the direction of CORONATION INSURANCE i.e., CORONATION INSURANCE and CUSTODIAN INVESTMENT go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and CUSTODIAN INVESTMENT
Assuming the 90 days trading horizon CORONATION INSURANCE PLC is expected to generate 1.41 times more return on investment than CUSTODIAN INVESTMENT. However, CORONATION INSURANCE is 1.41 times more volatile than CUSTODIAN INVESTMENT PLC. It trades about 0.15 of its potential returns per unit of risk. CUSTODIAN INVESTMENT PLC is currently generating about 0.17 per unit of risk. If you would invest 77.00 in CORONATION INSURANCE PLC on May 28, 2025 and sell it today you would earn a total of 265.00 from holding CORONATION INSURANCE PLC or generate 344.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORONATION INSURANCE PLC vs. CUSTODIAN INVESTMENT PLC
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| CUSTODIAN INVESTMENT PLC |
CORONATION INSURANCE and CUSTODIAN INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and CUSTODIAN INVESTMENT
The main advantage of trading using opposite CORONATION INSURANCE and CUSTODIAN INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, CUSTODIAN INVESTMENT 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 CUSTODIAN INVESTMENT will offset losses from the drop in CUSTODIAN INVESTMENT'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 |
| CUSTODIAN INVESTMENT vs. GUINEA INSURANCE PLC | CUSTODIAN INVESTMENT vs. ALUMINIUM EXTRUSION IND | CUSTODIAN INVESTMENT vs. VITAFOAM NIGERIA PLC | CUSTODIAN INVESTMENT 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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