Correlation Between CONSOLIDATED HALLMARK and IKEJA HOTELS
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By analyzing existing cross correlation between CONSOLIDATED HALLMARK INSURANCE and IKEJA HOTELS PLC, you can compare the effects of market volatilities on CONSOLIDATED HALLMARK and IKEJA HOTELS 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 IKEJA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED HALLMARK and IKEJA HOTELS.
Diversification Opportunities for CONSOLIDATED HALLMARK and IKEJA HOTELS
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CONSOLIDATED and IKEJA is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK INSURANC and IKEJA HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKEJA HOTELS 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 IKEJA HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKEJA HOTELS PLC has no effect on the direction of CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and IKEJA HOTELS go up and down completely randomly.
Pair Corralation between CONSOLIDATED HALLMARK and IKEJA HOTELS
Assuming the 90 days trading horizon CONSOLIDATED HALLMARK INSURANCE is expected to under-perform the IKEJA HOTELS. But the stock apears to be less risky and, when comparing its historical volatility, CONSOLIDATED HALLMARK INSURANCE is 1.12 times less risky than IKEJA HOTELS. The stock trades about -0.19 of its potential returns per unit of risk. The IKEJA HOTELS PLC is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,235 in IKEJA HOTELS PLC on November 3, 2024 and sell it today you would lose (135.00) from holding IKEJA HOTELS PLC or give up 10.93% 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. IKEJA HOTELS PLC
Performance |
| Timeline |
| CONSOLIDATED HALLMARK |
| IKEJA HOTELS PLC |
CONSOLIDATED HALLMARK and IKEJA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSOLIDATED HALLMARK and IKEJA HOTELS
The main advantage of trading using opposite CONSOLIDATED HALLMARK and IKEJA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED HALLMARK position performs unexpectedly, IKEJA HOTELS 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 IKEJA HOTELS will offset losses from the drop in IKEJA HOTELS's long position.| CONSOLIDATED HALLMARK vs. AIICO INSURANCE PLC | CONSOLIDATED HALLMARK vs. CUSTODIAN INVESTMENT PLC | CONSOLIDATED HALLMARK vs. GOLDLINK INSURANCE PLC | CONSOLIDATED HALLMARK vs. DN TYRE RUBBER |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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