Correlation Between SFS REAL and AIICO INSURANCE
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By analyzing existing cross correlation between SFS REAL ESTATE and AIICO INSURANCE PLC, you can compare the effects of market volatilities on SFS REAL and AIICO INSURANCE 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 SFS REAL with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFS REAL and AIICO INSURANCE.
Diversification Opportunities for SFS REAL and AIICO INSURANCE
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SFS and AIICO is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SFS REAL ESTATE and AIICO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIICO INSURANCE PLC and SFS REAL 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 SFS REAL ESTATE are associated (or correlated) with AIICO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIICO INSURANCE PLC has no effect on the direction of SFS REAL i.e., SFS REAL and AIICO INSURANCE go up and down completely randomly.
Pair Corralation between SFS REAL and AIICO INSURANCE
Assuming the 90 days trading horizon SFS REAL is expected to generate 1.45 times less return on investment than AIICO INSURANCE. But when comparing it to its historical volatility, SFS REAL ESTATE is 1.72 times less risky than AIICO INSURANCE. It trades about 0.18 of its potential returns per unit of risk. AIICO INSURANCE PLC is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 168.00 in AIICO INSURANCE PLC on May 4, 2025 and sell it today you would earn a total of 51.00 from holding AIICO INSURANCE PLC or generate 30.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.39% |
Values | Daily Returns |
SFS REAL ESTATE vs. AIICO INSURANCE PLC
Performance |
Timeline |
SFS REAL ESTATE |
AIICO INSURANCE PLC |
SFS REAL and AIICO INSURANCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SFS REAL and AIICO INSURANCE
The main advantage of trading using opposite SFS REAL and AIICO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFS REAL position performs unexpectedly, AIICO INSURANCE 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 AIICO INSURANCE will offset losses from the drop in AIICO INSURANCE's long position.SFS REAL vs. AIICO INSURANCE PLC | SFS REAL vs. NEM INSURANCE PLC | SFS REAL vs. UNIVERSAL INSURANCE PANY | SFS REAL vs. FORTIS GLOBAL INSURANCE |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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