Correlation Between CORONATION INSURANCE and VFD GROUP
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By analyzing existing cross correlation between CORONATION INSURANCE PLC and VFD GROUP, you can compare the effects of market volatilities on CORONATION INSURANCE and VFD GROUP 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 VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and VFD GROUP.
Diversification Opportunities for CORONATION INSURANCE and VFD GROUP
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CORONATION and VFD is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CORONATION INSURANCE PLC and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP 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 VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of CORONATION INSURANCE i.e., CORONATION INSURANCE and VFD GROUP go up and down completely randomly.
Pair Corralation between CORONATION INSURANCE and VFD GROUP
Assuming the 90 days trading horizon CORONATION INSURANCE PLC is expected to generate 1.09 times more return on investment than VFD GROUP. However, CORONATION INSURANCE is 1.09 times more volatile than VFD GROUP. It trades about 0.34 of its potential returns per unit of risk. VFD GROUP is currently generating about -0.33 per unit of risk. If you would invest 200.00 in CORONATION INSURANCE PLC on April 7, 2025 and sell it today you would earn a total of 50.00 from holding CORONATION INSURANCE PLC or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORONATION INSURANCE PLC vs. VFD GROUP
Performance |
| Timeline |
| CORONATION INSURANCE PLC |
| VFD GROUP |
CORONATION INSURANCE and VFD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORONATION INSURANCE and VFD GROUP
The main advantage of trading using opposite CORONATION INSURANCE and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, VFD GROUP 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 VFD GROUP will offset losses from the drop in VFD GROUP's long position.| CORONATION INSURANCE vs. CORNERSTONE INSURANCE PLC | CORONATION INSURANCE vs. AIICO INSURANCE PLC | CORONATION INSURANCE vs. WEMA BANK PLC | CORONATION INSURANCE vs. UNITED BANK FOR |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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