Correlation Between GUINEA INSURANCE and DEAP CAPITAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between GUINEA INSURANCE PLC and DEAP CAPITAL MANAGEMENT, you can compare the effects of market volatilities on GUINEA INSURANCE and DEAP CAPITAL 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 GUINEA INSURANCE with a short position of DEAP CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINEA INSURANCE and DEAP CAPITAL.
Diversification Opportunities for GUINEA INSURANCE and DEAP CAPITAL
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GUINEA and DEAP is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding GUINEA INSURANCE PLC and DEAP CAPITAL MANAGEMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEAP CAPITAL MANAGEMENT and GUINEA 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 GUINEA INSURANCE PLC are associated (or correlated) with DEAP CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEAP CAPITAL MANAGEMENT has no effect on the direction of GUINEA INSURANCE i.e., GUINEA INSURANCE and DEAP CAPITAL go up and down completely randomly.
Pair Corralation between GUINEA INSURANCE and DEAP CAPITAL
Assuming the 90 days trading horizon GUINEA INSURANCE is expected to generate 3.45 times less return on investment than DEAP CAPITAL. But when comparing it to its historical volatility, GUINEA INSURANCE PLC is 1.39 times less risky than DEAP CAPITAL. It trades about 0.02 of its potential returns per unit of risk. DEAP CAPITAL MANAGEMENT is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 96.00 in DEAP CAPITAL MANAGEMENT on September 2, 2024 and sell it today you would earn a total of 10.00 from holding DEAP CAPITAL MANAGEMENT or generate 10.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GUINEA INSURANCE PLC vs. DEAP CAPITAL MANAGEMENT
Performance |
Timeline |
GUINEA INSURANCE PLC |
DEAP CAPITAL MANAGEMENT |
GUINEA INSURANCE and DEAP CAPITAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GUINEA INSURANCE and DEAP CAPITAL
The main advantage of trading using opposite GUINEA INSURANCE and DEAP CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINEA INSURANCE position performs unexpectedly, DEAP CAPITAL 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 DEAP CAPITAL will offset losses from the drop in DEAP CAPITAL's long position.GUINEA INSURANCE vs. BUA FOODS PLC | GUINEA INSURANCE vs. CONSOLIDATED HALLMARK INSURANCE | GUINEA INSURANCE vs. AXAMANSARD INSURANCE PLC | GUINEA INSURANCE vs. MULTIVERSE MINING AND |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |