Correlation Between STACO INSURANCE and CUSTODIAN INVESTMENT

Can any of the company-specific risk be diversified away by investing in both STACO INSURANCE and CUSTODIAN INVESTMENT 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 STACO INSURANCE and CUSTODIAN INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for STACO INSURANCE and CUSTODIAN INVESTMENT

0.0

Correlation Coefficient

STACO INSURANCE  CUSTODIAN INVESTMENT

Pay attention - limited upside

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

Pair Corralation between STACO INSURANCE and CUSTODIAN INVESTMENT

If you would invest  48.00  in STACO INSURANCE PLC on September 16, 2025 and sell it today you would earn a total of  0.00  from holding STACO INSURANCE PLC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

STACO INSURANCE PLC  vs.  CUSTODIAN INVESTMENT PLC

STACO INSURANCE PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days STACO INSURANCE PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, STACO INSURANCE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CUSTODIAN INVESTMENT PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days CUSTODIAN INVESTMENT PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with STACO INSURANCE and CUSTODIAN INVESTMENT

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

The idea behind STACO INSURANCE PLC and CUSTODIAN INVESTMENT PLC 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.