Correlation Between CORNERSTONE INSURANCE and NEIMETH INTERNATIONAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between CORNERSTONE INSURANCE PLC and NEIMETH INTERNATIONAL PHARMACEUTICAL, you can compare the effects of market volatilities on CORNERSTONE INSURANCE and NEIMETH INTERNATIONAL 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 CORNERSTONE INSURANCE with a short position of NEIMETH INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORNERSTONE INSURANCE and NEIMETH INTERNATIONAL.
Diversification Opportunities for CORNERSTONE INSURANCE and NEIMETH INTERNATIONAL
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CORNERSTONE and NEIMETH is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CORNERSTONE INSURANCE PLC and NEIMETH INTERNATIONAL PHARMACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEIMETH INTERNATIONAL and CORNERSTONE INSURANCE 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 CORNERSTONE INSURANCE PLC are associated (or correlated) with NEIMETH INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEIMETH INTERNATIONAL has no effect on the direction of CORNERSTONE INSURANCE i.e., CORNERSTONE INSURANCE and NEIMETH INTERNATIONAL go up and down completely randomly.
Pair Corralation between CORNERSTONE INSURANCE and NEIMETH INTERNATIONAL
Assuming the 90 days trading horizon CORNERSTONE INSURANCE PLC is expected to generate 1.24 times more return on investment than NEIMETH INTERNATIONAL. However, CORNERSTONE INSURANCE is 1.24 times more volatile than NEIMETH INTERNATIONAL PHARMACEUTICAL. It trades about 0.1 of its potential returns per unit of risk. NEIMETH INTERNATIONAL PHARMACEUTICAL is currently generating about 0.02 per unit of risk. If you would invest 140.00 in CORNERSTONE INSURANCE PLC on September 20, 2024 and sell it today you would earn a total of 174.00 from holding CORNERSTONE INSURANCE PLC or generate 124.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORNERSTONE INSURANCE PLC vs. NEIMETH INTERNATIONAL PHARMACE
Performance |
| Timeline |
| CORNERSTONE INSURANCE PLC |
| NEIMETH INTERNATIONAL |
CORNERSTONE INSURANCE and NEIMETH INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORNERSTONE INSURANCE and NEIMETH INTERNATIONAL
The main advantage of trading using opposite CORNERSTONE INSURANCE and NEIMETH INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORNERSTONE INSURANCE position performs unexpectedly, NEIMETH INTERNATIONAL 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 NEIMETH INTERNATIONAL will offset losses from the drop in NEIMETH INTERNATIONAL's long position.| CORNERSTONE INSURANCE vs. GUINEA INSURANCE PLC | CORNERSTONE INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | CORNERSTONE INSURANCE vs. VFD GROUP | CORNERSTONE INSURANCE vs. IKEJA HOTELS PLC |
| NEIMETH INTERNATIONAL vs. NEM INSURANCE PLC | NEIMETH INTERNATIONAL vs. CHAMPION BREWERIES PLC | NEIMETH INTERNATIONAL vs. CORNERSTONE INSURANCE PLC | NEIMETH INTERNATIONAL vs. NIGERIAN BREWERIES 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world |