Correlation Between CORONATION INSURANCE and ASO SAVINGS

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Can any of the company-specific risk be diversified away by investing in both CORONATION INSURANCE and ASO SAVINGS 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 CORONATION INSURANCE and ASO SAVINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CORONATION INSURANCE PLC and ASO SAVINGS AND, you can compare the effects of market volatilities on CORONATION INSURANCE and ASO SAVINGS 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 ASO SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORONATION INSURANCE and ASO SAVINGS.

Diversification Opportunities for CORONATION INSURANCE and ASO SAVINGS

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between CORONATION INSURANCE and ASO SAVINGS

If you would invest  82.00  in CORONATION INSURANCE PLC on September 13, 2024 and sell it today you would earn a total of  39.00  from holding CORONATION INSURANCE PLC or generate 47.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

CORONATION INSURANCE PLC  vs.  ASO SAVINGS AND

 Performance 
       Timeline  
CORONATION INSURANCE PLC 

Risk-Adjusted Performance

13 of 100

 
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Compared to the overall equity markets, risk-adjusted returns on investments in CORONATION INSURANCE PLC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent forward indicators, CORONATION INSURANCE showed solid returns over the last few months and may actually be approaching a breakup point.
ASO SAVINGS AND 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ASO SAVINGS AND has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, ASO SAVINGS is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

CORONATION INSURANCE and ASO SAVINGS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CORONATION INSURANCE and ASO SAVINGS

The main advantage of trading using opposite CORONATION INSURANCE and ASO SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORONATION INSURANCE position performs unexpectedly, ASO SAVINGS 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 ASO SAVINGS will offset losses from the drop in ASO SAVINGS's long position.
The idea behind CORONATION INSURANCE PLC and ASO SAVINGS AND 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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