Correlation Between CORONATION INSURANCE and UPDC PLC
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and UPDC PLC, you can compare the effects of market volatilities on CORONATION INSURANCE and UPDC PLC 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 UPDC PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and UPDC PLC.
Diversification Opportunities for CORONATION INSURANCE and UPDC PLC
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CORONATION and UPDC is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC and UPDC PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPDC 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 UPDC PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPDC PLC has no effect on the direction of CORONATION INSURANCE i.e., CORONATION INSURANCE and UPDC PLC go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and UPDC PLC
Assuming the 90 days trading horizon CORONATION INSURANCE is expected to generate 1.74 times less return on investment than UPDC PLC. But when comparing it to its historical volatility, CORONATION INSURANCE PLC is 1.01 times less risky than UPDC PLC. It trades about 0.15 of its potential returns per unit of risk. UPDC PLC is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 301.00 in UPDC PLC on May 27, 2025 and sell it today you would earn a total of 392.00 from holding UPDC PLC or generate 130.23% 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. UPDC PLC
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| UPDC PLC |
CORONATION INSURANCE and UPDC PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and UPDC PLC
The main advantage of trading using opposite CORONATION INSURANCE and UPDC PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, UPDC PLC 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 UPDC PLC will offset losses from the drop in UPDC PLC's long position.| CORONATION INSURANCE vs. ASO SAVINGS AND | CORONATION INSURANCE vs. AFRICAN ALLIANCE INSURANCE | CORONATION INSURANCE vs. FORTIS GLOBAL INSURANCE | CORONATION INSURANCE vs. STACO INSURANCE PLC |
| UPDC PLC vs. STACO INSURANCE PLC | UPDC PLC vs. UNITY BANK PLC | UPDC PLC vs. MULTIVERSE MINING AND | UPDC PLC vs. BUA FOODS PLC |
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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