Correlation Between AXAMANSARD INSURANCE and NEM INSURANCE
Specify exactly 2 symbols:
By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and NEM INSURANCE PLC, you can compare the effects of market volatilities on AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE with a short position of NEM INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and NEM INSURANCE.
Diversification Opportunities for AXAMANSARD INSURANCE and NEM INSURANCE
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AXAMANSARD and NEM is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE 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 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 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 AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and NEM INSURANCE go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and NEM INSURANCE
Assuming the 90 days trading horizon AXAMANSARD INSURANCE is expected to generate 1.11 times less return on investment than NEM INSURANCE. But when comparing it to its historical volatility, AXAMANSARD INSURANCE PLC is 1.27 times less risky than NEM INSURANCE. It trades about 0.07 of its potential returns per unit of risk. NEM INSURANCE PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 551.00 in NEM INSURANCE PLC on September 2, 2024 and sell it today you would earn a total of 299.00 from holding NEM INSURANCE PLC or generate 54.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXAMANSARD INSURANCE PLC vs. NEM INSURANCE PLC
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| NEM INSURANCE PLC |
AXAMANSARD INSURANCE and NEM INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and NEM INSURANCE
The main advantage of trading using opposite AXAMANSARD INSURANCE and NEM INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE 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.The idea behind AXAMANSARD INSURANCE PLC and NEM INSURANCE PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |