Correlation Between FIDSON HEALTHCARE and NEM INSURANCE
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By analyzing existing cross correlation between FIDSON HEALTHCARE PLC and NEM INSURANCE PLC, you can compare the effects of market volatilities on FIDSON HEALTHCARE and NEM 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 FIDSON HEALTHCARE with a short position of NEM INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDSON HEALTHCARE and NEM INSURANCE.
Diversification Opportunities for FIDSON HEALTHCARE and NEM INSURANCE
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIDSON and NEM is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FIDSON HEALTHCARE PLC and NEM INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEM INSURANCE PLC and FIDSON HEALTHCARE 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 FIDSON HEALTHCARE PLC are associated (or correlated) with NEM INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEM INSURANCE PLC has no effect on the direction of FIDSON HEALTHCARE i.e., FIDSON HEALTHCARE and NEM INSURANCE go up and down completely randomly.
Pair Corralation between FIDSON HEALTHCARE and NEM INSURANCE
Assuming the 90 days trading horizon FIDSON HEALTHCARE PLC is expected to generate 0.58 times more return on investment than NEM INSURANCE. However, FIDSON HEALTHCARE PLC is 1.72 times less risky than NEM INSURANCE. It trades about 0.45 of its potential returns per unit of risk. NEM INSURANCE PLC is currently generating about 0.26 per unit of risk. If you would invest 1,450 in FIDSON HEALTHCARE PLC on October 23, 2024 and sell it today you would earn a total of 275.00 from holding FIDSON HEALTHCARE PLC or generate 18.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
FIDSON HEALTHCARE PLC vs. NEM INSURANCE PLC
Performance |
| Timeline |
| FIDSON HEALTHCARE PLC |
| NEM INSURANCE PLC |
FIDSON HEALTHCARE and NEM INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDSON HEALTHCARE and NEM INSURANCE
The main advantage of trading using opposite FIDSON HEALTHCARE and NEM INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDSON HEALTHCARE position performs unexpectedly, NEM 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 NEM INSURANCE will offset losses from the drop in NEM INSURANCE's long position.| FIDSON HEALTHCARE vs. UNIVERSAL INSURANCE PANY | FIDSON HEALTHCARE vs. CONOIL PLC | FIDSON HEALTHCARE vs. GOLDLINK INSURANCE PLC | FIDSON HEALTHCARE vs. THOMAS WYATT NIGERIA |
| NEM INSURANCE vs. AIICO INSURANCE PLC | NEM INSURANCE vs. INTERNATIONAL ENERGY INSURANCE | NEM INSURANCE vs. CHAMPION BREWERIES PLC | NEM INSURANCE vs. AXAMANSARD 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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