Correlation Between NEM INSURANCE and CUSTODIAN INVESTMENT
Specify exactly 2 symbols:
By analyzing existing cross correlation between NEM INSURANCE PLC and CUSTODIAN INVESTMENT PLC, you can compare the effects of market volatilities on NEM INSURANCE and CUSTODIAN INVESTMENT 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 CUSTODIAN INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and CUSTODIAN INVESTMENT.
Diversification Opportunities for NEM INSURANCE and CUSTODIAN INVESTMENT
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NEM and CUSTODIAN is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding NEM INSURANCE PLC and CUSTODIAN INVESTMENT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUSTODIAN INVESTMENT PLC 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 CUSTODIAN INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUSTODIAN INVESTMENT PLC has no effect on the direction of NEM INSURANCE i.e., NEM INSURANCE and CUSTODIAN INVESTMENT go up and down completely randomly.
Pair Corralation between NEM INSURANCE and CUSTODIAN INVESTMENT
Assuming the 90 days trading horizon NEM INSURANCE is expected to generate 1.03 times less return on investment than CUSTODIAN INVESTMENT. In addition to that, NEM INSURANCE is 1.32 times more volatile than CUSTODIAN INVESTMENT PLC. It trades about 0.17 of its total potential returns per unit of risk. CUSTODIAN INVESTMENT PLC is currently generating about 0.24 per unit of volatility. If you would invest 1,695 in CUSTODIAN INVESTMENT PLC on October 22, 2024 and sell it today you would earn a total of 205.00 from holding CUSTODIAN INVESTMENT PLC or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEM INSURANCE PLC vs. CUSTODIAN INVESTMENT PLC
Performance |
| Timeline |
| NEM INSURANCE PLC |
| CUSTODIAN INVESTMENT PLC |
NEM INSURANCE and CUSTODIAN INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and CUSTODIAN INVESTMENT
The main advantage of trading using opposite NEM INSURANCE and CUSTODIAN INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM INSURANCE position performs unexpectedly, CUSTODIAN INVESTMENT 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 CUSTODIAN INVESTMENT will offset losses from the drop in CUSTODIAN INVESTMENT's long position.| NEM INSURANCE vs. DN TYRE RUBBER | NEM INSURANCE vs. AFRICAN ALLIANCE INSURANCE | NEM INSURANCE vs. WEMA BANK PLC | NEM INSURANCE vs. CONSOLIDATED HALLMARK INSURANCE |
| CUSTODIAN INVESTMENT vs. NEM INSURANCE PLC | CUSTODIAN INVESTMENT vs. AXAMANSARD INSURANCE PLC | CUSTODIAN INVESTMENT vs. FIDELITY BANK PLC | CUSTODIAN INVESTMENT vs. ASO SAVINGS AND |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |