Correlation Between CONSOLIDATED HALLMARK and WEMA BANK
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By analyzing existing cross correlation between CONSOLIDATED HALLMARK INSURANCE and WEMA BANK PLC, you can compare the effects of market volatilities on CONSOLIDATED HALLMARK and WEMA 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 WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED HALLMARK and WEMA BANK.
Diversification Opportunities for CONSOLIDATED HALLMARK and WEMA BANK
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CONSOLIDATED and WEMA is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK INSURANC and WEMA BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEMA 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 WEMA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEMA BANK PLC has no effect on the direction of CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and WEMA BANK go up and down completely randomly.
Pair Corralation between CONSOLIDATED HALLMARK and WEMA BANK
Assuming the 90 days trading horizon CONSOLIDATED HALLMARK INSURANCE is expected to under-perform the WEMA BANK. In addition to that, CONSOLIDATED HALLMARK is 1.39 times more volatile than WEMA BANK PLC. It trades about -0.26 of its total potential returns per unit of risk. WEMA BANK PLC is currently generating about 0.22 per unit of volatility. If you would invest 1,000.00 in WEMA BANK PLC on November 4, 2024 and sell it today you would earn a total of 145.00 from holding WEMA BANK PLC or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONSOLIDATED HALLMARK INSURANC vs. WEMA BANK PLC
Performance |
| Timeline |
| CONSOLIDATED HALLMARK |
| WEMA BANK PLC |
CONSOLIDATED HALLMARK and WEMA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSOLIDATED HALLMARK and WEMA BANK
The main advantage of trading using opposite CONSOLIDATED HALLMARK and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED HALLMARK position performs unexpectedly, WEMA 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 WEMA BANK will offset losses from the drop in WEMA BANK'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 |
| WEMA BANK vs. DEAP CAPITAL MANAGEMENT | WEMA BANK vs. AFROMEDIA PLC | WEMA BANK vs. UNION HOMES SAVINGS | WEMA BANK vs. NOTORE CHEMICAL IND |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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