Correlation Between LIVINGTRUST MORTGAGE and NEM INSURANCE
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By analyzing existing cross correlation between LIVINGTRUST MORTGAGE BANK and NEM INSURANCE PLC, you can compare the effects of market volatilities on LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE with a short position of NEM INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIVINGTRUST MORTGAGE and NEM INSURANCE.
Diversification Opportunities for LIVINGTRUST MORTGAGE and NEM INSURANCE
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between LIVINGTRUST and NEM is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding LIVINGTRUST MORTGAGE BANK 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 LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE BANK 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 LIVINGTRUST MORTGAGE i.e., LIVINGTRUST MORTGAGE and NEM INSURANCE go up and down completely randomly.
Pair Corralation between LIVINGTRUST MORTGAGE and NEM INSURANCE
Assuming the 90 days trading horizon LIVINGTRUST MORTGAGE BANK is expected to generate 0.62 times more return on investment than NEM INSURANCE. However, LIVINGTRUST MORTGAGE BANK is 1.6 times less risky than NEM INSURANCE. It trades about 0.22 of its potential returns per unit of risk. NEM INSURANCE PLC is currently generating about -0.02 per unit of risk. If you would invest 438.00 in LIVINGTRUST MORTGAGE BANK on November 5, 2024 and sell it today you would earn a total of 43.00 from holding LIVINGTRUST MORTGAGE BANK or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIVINGTRUST MORTGAGE BANK vs. NEM INSURANCE PLC
Performance |
| Timeline |
| LIVINGTRUST MORTGAGE BANK |
| NEM INSURANCE PLC |
LIVINGTRUST MORTGAGE and NEM INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIVINGTRUST MORTGAGE and NEM INSURANCE
The main advantage of trading using opposite LIVINGTRUST MORTGAGE and NEM INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIVINGTRUST MORTGAGE 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.| LIVINGTRUST MORTGAGE vs. WEMA BANK PLC | LIVINGTRUST MORTGAGE vs. UNION HOMES REAL | LIVINGTRUST MORTGAGE vs. CHAMPION BREWERIES PLC | LIVINGTRUST MORTGAGE vs. FIDSON HEALTHCARE PLC |
| NEM INSURANCE vs. GUINEA INSURANCE PLC | NEM INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | NEM INSURANCE vs. VFD GROUP | NEM INSURANCE 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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