Correlation Between CORONATION INSURANCE and UNION HOMES
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and UNION HOMES REAL, you can compare the effects of market volatilities on CORONATION INSURANCE and UNION HOMES 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 UNION HOMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and UNION HOMES.
Diversification Opportunities for CORONATION INSURANCE and UNION HOMES
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CORONATION and UNION is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC and UNION HOMES REAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNION HOMES REAL 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 UNION HOMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNION HOMES REAL has no effect on the direction of CORONATION INSURANCE i.e., CORONATION INSURANCE and UNION HOMES go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and UNION HOMES
Assuming the 90 days trading horizon CORONATION INSURANCE PLC is expected to generate 2.23 times more return on investment than UNION HOMES. However, CORONATION INSURANCE is 2.23 times more volatile than UNION HOMES REAL. It trades about 0.18 of its potential returns per unit of risk. UNION HOMES REAL is currently generating about 0.16 per unit of risk. If you would invest 213.00 in CORONATION INSURANCE PLC on May 31, 2025 and sell it today you would earn a total of 145.00 from holding CORONATION INSURANCE PLC or generate 68.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORONATION INSURANCE PLC vs. UNION HOMES REAL
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| UNION HOMES REAL |
CORONATION INSURANCE and UNION HOMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and UNION HOMES
The main advantage of trading using opposite CORONATION INSURANCE and UNION HOMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, UNION HOMES 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 UNION HOMES will offset losses from the drop in UNION HOMES's long position.| CORONATION INSURANCE vs. FIDELITY BANK PLC | CORONATION INSURANCE vs. FORTIS GLOBAL INSURANCE | CORONATION INSURANCE vs. MULTIVERSE MINING AND | CORONATION INSURANCE vs. WEMA BANK PLC |
| UNION HOMES vs. GOLDEN GUINEA BREWERIES | UNION HOMES vs. NEM INSURANCE PLC | UNION HOMES vs. STERLING FINANCIAL HOLDINGS | UNION HOMES vs. MULTI TREX INTEGRATED FOODS |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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