Correlation Between NEM INSURANCE and CONSOLIDATED HALLMARK
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By analyzing existing cross correlation between NEM INSURANCE PLC and CONSOLIDATED HALLMARK INSURANCE, you can compare the effects of market volatilities on NEM 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 NEM INSURANCE with a short position of CONSOLIDATED HALLMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and CONSOLIDATED HALLMARK.
Diversification Opportunities for NEM INSURANCE and CONSOLIDATED HALLMARK
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NEM and CONSOLIDATED is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding NEM 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 NEM 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 NEM 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 NEM INSURANCE i.e., NEM INSURANCE and CONSOLIDATED HALLMARK go up and down completely randomly.
Pair Corralation between NEM INSURANCE and CONSOLIDATED HALLMARK
Assuming the 90 days trading horizon NEM INSURANCE is expected to generate 26.59 times less return on investment than CONSOLIDATED HALLMARK. But when comparing it to its historical volatility, NEM INSURANCE PLC is 2.2 times less risky than CONSOLIDATED HALLMARK. It trades about 0.02 of its potential returns per unit of risk. CONSOLIDATED HALLMARK INSURANCE is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 152.00 in CONSOLIDATED HALLMARK INSURANCE on August 31, 2024 and sell it today you would earn a total of 44.00 from holding CONSOLIDATED HALLMARK INSURANCE or generate 28.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEM INSURANCE PLC vs. CONSOLIDATED HALLMARK INSURANC
Performance |
| Timeline |
| NEM INSURANCE PLC |
| CONSOLIDATED HALLMARK |
NEM INSURANCE and CONSOLIDATED HALLMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and CONSOLIDATED HALLMARK
The main advantage of trading using opposite NEM INSURANCE and CONSOLIDATED HALLMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM 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.| NEM INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | NEM INSURANCE vs. VFD GROUP | NEM INSURANCE vs. AFROMEDIA PLC | NEM INSURANCE vs. DEAP CAPITAL MANAGEMENT |
| CONSOLIDATED HALLMARK vs. SECURE ELECTRONIC TECHNOLOGY | CONSOLIDATED HALLMARK vs. VFD GROUP | CONSOLIDATED HALLMARK vs. AFROMEDIA PLC | CONSOLIDATED HALLMARK vs. DEAP CAPITAL MANAGEMENT |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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