Correlation Between CONSOLIDATED HALLMARK and AIICO INSURANCE
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By analyzing existing cross correlation between CONSOLIDATED HALLMARK INSURANCE and AIICO INSURANCE PLC, you can compare the effects of market volatilities on CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED HALLMARK and AIICO INSURANCE.
Diversification Opportunities for CONSOLIDATED HALLMARK and AIICO INSURANCE
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CONSOLIDATED and AIICO is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK INSURANC 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 CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK INSURANCE 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 CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and AIICO INSURANCE go up and down completely randomly.
Pair Corralation between CONSOLIDATED HALLMARK and AIICO INSURANCE
Assuming the 90 days trading horizon CONSOLIDATED HALLMARK INSURANCE is expected to under-perform the AIICO INSURANCE. But the stock apears to be less risky and, when comparing its historical volatility, CONSOLIDATED HALLMARK INSURANCE is 1.05 times less risky than AIICO INSURANCE. The stock trades about -0.27 of its potential returns per unit of risk. The AIICO INSURANCE PLC is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 189.00 in AIICO INSURANCE PLC on November 5, 2024 and sell it today you would lose (27.00) from holding AIICO INSURANCE PLC or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONSOLIDATED HALLMARK INSURANC vs. AIICO INSURANCE PLC
Performance |
| Timeline |
| CONSOLIDATED HALLMARK |
| AIICO INSURANCE PLC |
CONSOLIDATED HALLMARK and AIICO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSOLIDATED HALLMARK and AIICO INSURANCE
The main advantage of trading using opposite CONSOLIDATED HALLMARK and AIICO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED HALLMARK 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.| 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 |
| AIICO INSURANCE vs. AXAMANSARD INSURANCE PLC | AIICO INSURANCE vs. GOLDEN GUINEA BREWERIES | AIICO INSURANCE vs. UNITED BANK FOR | AIICO INSURANCE 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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