Correlation Between AIICO INSURANCE and NEM INSURANCE
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By analyzing existing cross correlation between AIICO INSURANCE PLC and NEM INSURANCE PLC, you can compare the effects of market volatilities on AIICO INSURANCE and NEM 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 AIICO INSURANCE with a short position of NEM INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIICO INSURANCE and NEM INSURANCE.
Diversification Opportunities for AIICO INSURANCE and NEM INSURANCE
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AIICO and NEM is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding AIICO INSURANCE PLC and NEM INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEM INSURANCE PLC and AIICO 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 AIICO INSURANCE PLC are associated (or correlated) with NEM INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEM INSURANCE PLC has no effect on the direction of AIICO INSURANCE i.e., AIICO INSURANCE and NEM INSURANCE go up and down completely randomly.
Pair Corralation between AIICO INSURANCE and NEM INSURANCE
Assuming the 90 days trading horizon AIICO INSURANCE PLC is expected to generate 0.89 times more return on investment than NEM INSURANCE. However, AIICO INSURANCE PLC is 1.12 times less risky than NEM INSURANCE. It trades about 0.07 of its potential returns per unit of risk. NEM INSURANCE PLC is currently generating about 0.05 per unit of risk. If you would invest 62.00 in AIICO INSURANCE PLC on August 31, 2024 and sell it today you would earn a total of 58.00 from holding AIICO INSURANCE PLC or generate 93.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIICO INSURANCE PLC vs. NEM INSURANCE PLC
Performance |
| Timeline |
| AIICO INSURANCE PLC |
| NEM INSURANCE PLC |
AIICO INSURANCE and NEM INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIICO INSURANCE and NEM INSURANCE
The main advantage of trading using opposite AIICO INSURANCE and NEM INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIICO INSURANCE position performs unexpectedly, NEM 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 NEM INSURANCE will offset losses from the drop in NEM INSURANCE's long position.| AIICO INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | AIICO INSURANCE vs. VFD GROUP | AIICO INSURANCE vs. AFROMEDIA PLC | AIICO INSURANCE vs. DEAP CAPITAL MANAGEMENT |
| NEM INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | NEM INSURANCE vs. VFD GROUP | NEM INSURANCE vs. AFROMEDIA PLC | NEM INSURANCE vs. DEAP CAPITAL MANAGEMENT |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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