Correlation Between ABBEY MORTGAGE and NPF MICRO
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By analyzing existing cross correlation between ABBEY MORTGAGE BANK and NPF MICRO FINANCE, you can compare the effects of market volatilities on ABBEY MORTGAGE and NPF MICRO 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 ABBEY MORTGAGE with a short position of NPF MICRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABBEY MORTGAGE and NPF MICRO.
Diversification Opportunities for ABBEY MORTGAGE and NPF MICRO
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABBEY and NPF is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ABBEY MORTGAGE BANK and NPF MICRO FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NPF MICRO FINANCE and ABBEY MORTGAGE 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 ABBEY MORTGAGE BANK are associated (or correlated) with NPF MICRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NPF MICRO FINANCE has no effect on the direction of ABBEY MORTGAGE i.e., ABBEY MORTGAGE and NPF MICRO go up and down completely randomly.
Pair Corralation between ABBEY MORTGAGE and NPF MICRO
Assuming the 90 days trading horizon ABBEY MORTGAGE BANK is expected to generate 1.28 times more return on investment than NPF MICRO. However, ABBEY MORTGAGE is 1.28 times more volatile than NPF MICRO FINANCE. It trades about 0.06 of its potential returns per unit of risk. NPF MICRO FINANCE is currently generating about -0.05 per unit of risk. If you would invest 253.00 in ABBEY MORTGAGE BANK on September 12, 2024 and sell it today you would earn a total of 27.00 from holding ABBEY MORTGAGE BANK or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABBEY MORTGAGE BANK vs. NPF MICRO FINANCE
Performance |
| Timeline |
| ABBEY MORTGAGE BANK |
| NPF MICRO FINANCE |
ABBEY MORTGAGE and NPF MICRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABBEY MORTGAGE and NPF MICRO
The main advantage of trading using opposite ABBEY MORTGAGE and NPF MICRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABBEY MORTGAGE position performs unexpectedly, NPF MICRO 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 NPF MICRO will offset losses from the drop in NPF MICRO's long position.| ABBEY MORTGAGE vs. ASO SAVINGS AND | ABBEY MORTGAGE vs. UNION HOMES SAVINGS | ABBEY MORTGAGE vs. CORNERSTONE INSURANCE PLC | ABBEY MORTGAGE vs. SECURE ELECTRONIC TECHNOLOGY |
| NPF MICRO vs. CORONATION INSURANCE PLC | NPF MICRO vs. MULTIVERSE MINING AND | NPF MICRO vs. MULTI TREX INTEGRATED FOODS | NPF MICRO vs. CONSOLIDATED HALLMARK INSURANCE |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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