Correlation Between AXAMANSARD INSURANCE and NPF MICRO
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By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and NPF MICRO FINANCE, you can compare the effects of market volatilities on AXAMANSARD INSURANCE and NPF MICRO 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 NPF MICRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and NPF MICRO.
Diversification Opportunities for AXAMANSARD INSURANCE and NPF MICRO
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AXAMANSARD and NPF is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and NPF MICRO FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NPF MICRO FINANCE 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 NPF MICRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NPF MICRO FINANCE has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and NPF MICRO go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and NPF MICRO
Assuming the 90 days trading horizon AXAMANSARD INSURANCE PLC is expected to generate 1.07 times more return on investment than NPF MICRO. However, AXAMANSARD INSURANCE is 1.07 times more volatile than NPF MICRO FINANCE. It trades about 0.1 of its potential returns per unit of risk. NPF MICRO FINANCE is currently generating about 0.01 per unit of risk. If you would invest 196.00 in AXAMANSARD INSURANCE PLC on September 13, 2024 and sell it today you would earn a total of 554.00 from holding AXAMANSARD INSURANCE PLC or generate 282.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXAMANSARD INSURANCE PLC vs. NPF MICRO FINANCE
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| NPF MICRO FINANCE |
AXAMANSARD INSURANCE and NPF MICRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and NPF MICRO
The main advantage of trading using opposite AXAMANSARD INSURANCE and NPF MICRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE position performs unexpectedly, NPF MICRO 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 NPF MICRO will offset losses from the drop in NPF MICRO's long position.| AXAMANSARD INSURANCE vs. GUINEA INSURANCE PLC | AXAMANSARD INSURANCE vs. BUA FOODS PLC | AXAMANSARD INSURANCE vs. STACO INSURANCE PLC | AXAMANSARD INSURANCE vs. STERLING FINANCIAL HOLDINGS |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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