Correlation Between AXAMANSARD INSURANCE and CONSOLIDATED HALLMARK
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By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and CONSOLIDATED HALLMARK INSURANCE, you can compare the effects of market volatilities on AXAMANSARD INSURANCE and CONSOLIDATED HALLMARK 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 AXAMANSARD INSURANCE with a short position of CONSOLIDATED HALLMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and CONSOLIDATED HALLMARK.
Diversification Opportunities for AXAMANSARD INSURANCE and CONSOLIDATED HALLMARK
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AXAMANSARD and CONSOLIDATED is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and CONSOLIDATED HALLMARK INSURANC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED HALLMARK and AXAMANSARD 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 AXAMANSARD INSURANCE PLC are associated (or correlated) with CONSOLIDATED HALLMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED HALLMARK has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and CONSOLIDATED HALLMARK go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and CONSOLIDATED HALLMARK
Assuming the 90 days trading horizon AXAMANSARD INSURANCE is expected to generate 1.59 times less return on investment than CONSOLIDATED HALLMARK. But when comparing it to its historical volatility, AXAMANSARD INSURANCE PLC is 2.34 times less risky than CONSOLIDATED HALLMARK. It trades about 0.49 of its potential returns per unit of risk. CONSOLIDATED HALLMARK INSURANCE is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 140.00 in CONSOLIDATED HALLMARK INSURANCE on August 28, 2024 and sell it today you would earn a total of 52.00 from holding CONSOLIDATED HALLMARK INSURANCE or generate 37.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXAMANSARD INSURANCE PLC vs. CONSOLIDATED HALLMARK INSURANC
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| CONSOLIDATED HALLMARK |
AXAMANSARD INSURANCE and CONSOLIDATED HALLMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and CONSOLIDATED HALLMARK
The main advantage of trading using opposite AXAMANSARD INSURANCE and CONSOLIDATED HALLMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE position performs unexpectedly, CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK will offset losses from the drop in CONSOLIDATED HALLMARK's long position.| AXAMANSARD INSURANCE vs. GUINEA INSURANCE PLC | AXAMANSARD INSURANCE vs. MEYER PLC | AXAMANSARD INSURANCE vs. VETIVA INDUSTRIAL ETF |
| CONSOLIDATED HALLMARK vs. GUINEA INSURANCE PLC | CONSOLIDATED HALLMARK vs. MEYER PLC | CONSOLIDATED HALLMARK vs. VETIVA INDUSTRIAL ETF |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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