Correlation Between NEM INSURANCE and GUINEA INSURANCE
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By analyzing existing cross correlation between NEM INSURANCE PLC and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on NEM INSURANCE and GUINEA 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 NEM INSURANCE with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and GUINEA INSURANCE.
Diversification Opportunities for NEM INSURANCE and GUINEA INSURANCE
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NEM and GUINEA is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding NEM INSURANCE PLC and GUINEA INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUINEA INSURANCE 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 GUINEA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUINEA INSURANCE PLC has no effect on the direction of NEM INSURANCE i.e., NEM INSURANCE and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between NEM INSURANCE and GUINEA INSURANCE
Assuming the 90 days trading horizon NEM INSURANCE is expected to generate 2.06 times less return on investment than GUINEA INSURANCE. But when comparing it to its historical volatility, NEM INSURANCE PLC is 1.81 times less risky than GUINEA INSURANCE. It trades about 0.15 of its potential returns per unit of risk. GUINEA INSURANCE PLC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 34.00 in GUINEA INSURANCE PLC on October 25, 2024 and sell it today you would earn a total of 53.00 from holding GUINEA INSURANCE PLC or generate 155.88% 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. GUINEA INSURANCE PLC
Performance |
| Timeline |
| NEM INSURANCE PLC |
| GUINEA INSURANCE PLC |
NEM INSURANCE and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and GUINEA INSURANCE
The main advantage of trading using opposite NEM INSURANCE and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM INSURANCE position performs unexpectedly, GUINEA 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 GUINEA INSURANCE will offset losses from the drop in GUINEA INSURANCE's long position.| NEM INSURANCE vs. GUINEA INSURANCE PLC | NEM INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | NEM INSURANCE vs. VETIVA BANKING ETF | NEM INSURANCE vs. BUA FOODS PLC |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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