Correlation Between CORNERSTONE INSURANCE and THOMAS WYATT

Can any of the company-specific risk be diversified away by investing in both CORNERSTONE INSURANCE and THOMAS WYATT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CORNERSTONE INSURANCE and THOMAS WYATT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CORNERSTONE INSURANCE PLC and THOMAS WYATT NIGERIA, you can compare the effects of market volatilities on CORNERSTONE INSURANCE and THOMAS WYATT 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 CORNERSTONE INSURANCE with a short position of THOMAS WYATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORNERSTONE INSURANCE and THOMAS WYATT.

Diversification Opportunities for CORNERSTONE INSURANCE and THOMAS WYATT

0.0

Correlation Coefficient

CORNERSTONE INSURANCE  THOMAS WYATT

Pay attention - limited upside

The 3 months correlation between CORNERSTONE and THOMAS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CORNERSTONE INSURANCE PLC and THOMAS WYATT NIGERIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THOMAS WYATT NIGERIA and CORNERSTONE 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 CORNERSTONE INSURANCE PLC are associated (or correlated) with THOMAS WYATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THOMAS WYATT NIGERIA has no effect on the direction of CORNERSTONE INSURANCE i.e., CORNERSTONE INSURANCE and THOMAS WYATT go up and down completely randomly.

Pair Corralation between CORNERSTONE INSURANCE and THOMAS WYATT

If you would invest  330.00  in CORNERSTONE INSURANCE PLC on December 29, 2024 and sell it today you would earn a total of  5.00  from holding CORNERSTONE INSURANCE PLC or generate 1.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CORNERSTONE INSURANCE PLC  vs.  THOMAS WYATT NIGERIA

CORNERSTONE INSURANCE PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CORNERSTONE INSURANCE PLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, CORNERSTONE INSURANCE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

THOMAS WYATT NIGERIA

Risk-Adjusted Performance

Insignificant

Over the last 90 days THOMAS WYATT NIGERIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, THOMAS WYATT is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with CORNERSTONE INSURANCE and THOMAS WYATT

The main advantage of trading using opposite CORNERSTONE INSURANCE and THOMAS WYATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORNERSTONE INSURANCE position performs unexpectedly, THOMAS WYATT 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 THOMAS WYATT will offset losses from the drop in THOMAS WYATT's long position.

The idea behind CORNERSTONE INSURANCE PLC and THOMAS WYATT NIGERIA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.