Correlation Between Global Indemnity and National Western
Can any of the company-specific risk be diversified away by investing in both Global Indemnity and National Western at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Global Indemnity and National Western into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Indemnity PLC and National Western Life, you can compare the effects of market volatilities on Global Indemnity and National Western 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 Global Indemnity with a short position of National Western. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Indemnity and National Western.
Diversification Opportunities for Global Indemnity and National Western
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and National is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Global Indemnity PLC and National Western Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Western Life and Global Indemnity 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 Global Indemnity PLC are associated (or correlated) with National Western. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Western Life has no effect on the direction of Global Indemnity i.e., Global Indemnity and National Western go up and down completely randomly.
Pair Corralation between Global Indemnity and National Western
If you would invest 3,391 in Global Indemnity PLC on August 31, 2024 and sell it today you would earn a total of 246.00 from holding Global Indemnity PLC or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Global Indemnity PLC vs. National Western Life
Performance |
| Timeline |
| Global Indemnity PLC |
| National Western Life |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Indemnity and National Western Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Indemnity and National Western
The main advantage of trading using opposite Global Indemnity and National Western positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Indemnity position performs unexpectedly, National Western 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 National Western will offset losses from the drop in National Western's long position.| Global Indemnity vs. Progressive Corp | Global Indemnity vs. Chubb | Global Indemnity vs. The Allstate | Global Indemnity vs. Kemper |
| National Western vs. MetLife Preferred Stock | National Western vs. Prudential Public Limited | National Western vs. CNO Financial Group | National Western vs. FG Annuities Life |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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