Correlation Between CHAMPION BREWERIES and CONSOLIDATED HALLMARK
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By analyzing existing cross correlation between CHAMPION BREWERIES PLC and CONSOLIDATED HALLMARK INSURANCE, you can compare the effects of market volatilities on CHAMPION BREWERIES and CONSOLIDATED HALLMARK 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 CHAMPION BREWERIES with a short position of CONSOLIDATED HALLMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHAMPION BREWERIES and CONSOLIDATED HALLMARK.
Diversification Opportunities for CHAMPION BREWERIES and CONSOLIDATED HALLMARK
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CHAMPION and CONSOLIDATED is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding CHAMPION BREWERIES PLC and CONSOLIDATED HALLMARK INSURANC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED HALLMARK and CHAMPION BREWERIES 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 CHAMPION BREWERIES PLC are associated (or correlated) with CONSOLIDATED HALLMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED HALLMARK has no effect on the direction of CHAMPION BREWERIES i.e., CHAMPION BREWERIES and CONSOLIDATED HALLMARK go up and down completely randomly.
Pair Corralation between CHAMPION BREWERIES and CONSOLIDATED HALLMARK
Assuming the 90 days trading horizon CHAMPION BREWERIES is expected to generate 12.48 times less return on investment than CONSOLIDATED HALLMARK. But when comparing it to its historical volatility, CHAMPION BREWERIES PLC is 2.29 times less risky than CONSOLIDATED HALLMARK. It trades about 0.02 of its potential returns per unit of risk. CONSOLIDATED HALLMARK INSURANCE is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 50.00 in CONSOLIDATED HALLMARK INSURANCE on November 5, 2024 and sell it today you would earn a total of 256.00 from holding CONSOLIDATED HALLMARK INSURANCE or generate 512.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.49% |
| Values | Daily Returns |
CHAMPION BREWERIES PLC vs. CONSOLIDATED HALLMARK INSURANC
Performance |
| Timeline |
| CHAMPION BREWERIES PLC |
| CONSOLIDATED HALLMARK |
CHAMPION BREWERIES and CONSOLIDATED HALLMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHAMPION BREWERIES and CONSOLIDATED HALLMARK
The main advantage of trading using opposite CHAMPION BREWERIES and CONSOLIDATED HALLMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAMPION BREWERIES position performs unexpectedly, CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK will offset losses from the drop in CONSOLIDATED HALLMARK's long position.| CHAMPION BREWERIES vs. CUSTODIAN INVESTMENT PLC | CHAMPION BREWERIES vs. UNION HOMES SAVINGS | CHAMPION BREWERIES vs. MULTI TREX INTEGRATED FOODS | CHAMPION BREWERIES vs. NIGERIAN BREWERIES PLC |
| CONSOLIDATED HALLMARK vs. IKEJA HOTELS PLC | CONSOLIDATED HALLMARK vs. MULTI TREX INTEGRATED FOODS | CONSOLIDATED HALLMARK vs. INTERNATIONAL ENERGY INSURANCE | CONSOLIDATED HALLMARK vs. STACO INSURANCE PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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