Correlation Between NEM INSURANCE and FIDSON HEALTHCARE
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By analyzing existing cross correlation between NEM INSURANCE PLC and FIDSON HEALTHCARE PLC, you can compare the effects of market volatilities on NEM INSURANCE and FIDSON HEALTHCARE 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 FIDSON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and FIDSON HEALTHCARE.
Diversification Opportunities for NEM INSURANCE and FIDSON HEALTHCARE
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NEM and FIDSON is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding NEM INSURANCE PLC and FIDSON HEALTHCARE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDSON HEALTHCARE 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 FIDSON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDSON HEALTHCARE PLC has no effect on the direction of NEM INSURANCE i.e., NEM INSURANCE and FIDSON HEALTHCARE go up and down completely randomly.
Pair Corralation between NEM INSURANCE and FIDSON HEALTHCARE
Assuming the 90 days trading horizon NEM INSURANCE PLC is expected to generate 1.4 times more return on investment than FIDSON HEALTHCARE. However, NEM INSURANCE is 1.4 times more volatile than FIDSON HEALTHCARE PLC. It trades about 0.07 of its potential returns per unit of risk. FIDSON HEALTHCARE PLC is currently generating about 0.05 per unit of risk. If you would invest 390.00 in NEM INSURANCE PLC on September 12, 2024 and sell it today you would earn a total of 585.00 from holding NEM INSURANCE PLC or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
NEM INSURANCE PLC vs. FIDSON HEALTHCARE PLC
Performance |
| Timeline |
| NEM INSURANCE PLC |
| FIDSON HEALTHCARE PLC |
NEM INSURANCE and FIDSON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and FIDSON HEALTHCARE
The main advantage of trading using opposite NEM INSURANCE and FIDSON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM INSURANCE position performs unexpectedly, FIDSON HEALTHCARE 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 FIDSON HEALTHCARE will offset losses from the drop in FIDSON HEALTHCARE's long position.| NEM INSURANCE vs. GUINEA INSURANCE PLC | NEM INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | NEM INSURANCE vs. VFD GROUP | NEM INSURANCE vs. IKEJA HOTELS PLC |
| FIDSON HEALTHCARE vs. STERLING FINANCIAL HOLDINGS | FIDSON HEALTHCARE vs. JAIZ BANK PLC | FIDSON HEALTHCARE vs. NEM INSURANCE PLC | FIDSON HEALTHCARE vs. MULTI TREX INTEGRATED FOODS |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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