Correlation Between CORONATION INSURANCE and SECURE ELECTRONIC
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and SECURE ELECTRONIC TECHNOLOGY, you can compare the effects of market volatilities on CORONATION INSURANCE and SECURE ELECTRONIC 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 SECURE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and SECURE ELECTRONIC.
Diversification Opportunities for CORONATION INSURANCE and SECURE ELECTRONIC
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CORONATION and SECURE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC and SECURE ELECTRONIC TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURE ELECTRONIC 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 SECURE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURE ELECTRONIC has no effect on the direction of CORONATION INSURANCE i.e., CORONATION INSURANCE and SECURE ELECTRONIC go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and SECURE ELECTRONIC
Assuming the 90 days trading horizon CORONATION INSURANCE PLC is expected to generate 0.86 times more return on investment than SECURE ELECTRONIC. However, CORONATION INSURANCE PLC is 1.16 times less risky than SECURE ELECTRONIC. It trades about 0.06 of its potential returns per unit of risk. SECURE ELECTRONIC TECHNOLOGY is currently generating about 0.05 per unit of risk. If you would invest 84.00 in CORONATION INSURANCE PLC on March 24, 2025 and sell it today you would earn a total of 116.00 from holding CORONATION INSURANCE PLC or generate 138.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
CORONATION INSURANCE PLC vs. SECURE ELECTRONIC TECHNOLOGY
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| SECURE ELECTRONIC |
CORONATION INSURANCE and SECURE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and SECURE ELECTRONIC
The main advantage of trading using opposite CORONATION INSURANCE and SECURE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, SECURE ELECTRONIC 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 SECURE ELECTRONIC will offset losses from the drop in SECURE ELECTRONIC's long position.| CORONATION INSURANCE vs. BUA FOODS PLC | CORONATION INSURANCE vs. TRANSCORP HOTELS PLC | CORONATION INSURANCE vs. STACO INSURANCE PLC | CORONATION INSURANCE vs. ASO SAVINGS AND |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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