Correlation Between CONSOLIDATED HALLMARK and JAIZ BANK
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By analyzing existing cross correlation between CONSOLIDATED HALLMARK INSURANCE and JAIZ BANK PLC, you can compare the effects of market volatilities on CONSOLIDATED HALLMARK and JAIZ BANK 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 JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED HALLMARK and JAIZ BANK.
Diversification Opportunities for CONSOLIDATED HALLMARK and JAIZ BANK
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CONSOLIDATED and JAIZ is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK INSURANC and JAIZ BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAIZ BANK 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 JAIZ BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAIZ BANK PLC has no effect on the direction of CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and JAIZ BANK go up and down completely randomly.
Pair Corralation between CONSOLIDATED HALLMARK and JAIZ BANK
Assuming the 90 days trading horizon CONSOLIDATED HALLMARK INSURANCE is expected to generate 2.58 times more return on investment than JAIZ BANK. However, CONSOLIDATED HALLMARK is 2.58 times more volatile than JAIZ BANK PLC. It trades about 0.37 of its potential returns per unit of risk. JAIZ BANK PLC is currently generating about 0.09 per unit of risk. If you would invest 160.00 in CONSOLIDATED HALLMARK INSURANCE on September 12, 2024 and sell it today you would earn a total of 70.00 from holding CONSOLIDATED HALLMARK INSURANCE or generate 43.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONSOLIDATED HALLMARK INSURANC vs. JAIZ BANK PLC
Performance |
| Timeline |
| CONSOLIDATED HALLMARK |
| JAIZ BANK PLC |
CONSOLIDATED HALLMARK and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSOLIDATED HALLMARK and JAIZ BANK
The main advantage of trading using opposite CONSOLIDATED HALLMARK and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED HALLMARK position performs unexpectedly, JAIZ BANK 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 JAIZ BANK will offset losses from the drop in JAIZ BANK's long position.| CONSOLIDATED HALLMARK vs. GUINEA INSURANCE PLC | CONSOLIDATED HALLMARK vs. SECURE ELECTRONIC TECHNOLOGY | CONSOLIDATED HALLMARK vs. VFD GROUP | CONSOLIDATED HALLMARK vs. IKEJA HOTELS PLC |
| JAIZ BANK vs. GUINEA INSURANCE PLC | JAIZ BANK vs. SECURE ELECTRONIC TECHNOLOGY | JAIZ BANK vs. VFD GROUP | JAIZ BANK vs. IKEJA HOTELS 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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