Correlation Between NEM INSURANCE and NEIMETH INTERNATIONAL
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By analyzing existing cross correlation between NEM INSURANCE PLC and NEIMETH INTERNATIONAL PHARMACEUTICAL, you can compare the effects of market volatilities on NEM INSURANCE and NEIMETH INTERNATIONAL 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 NEIMETH INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and NEIMETH INTERNATIONAL.
Diversification Opportunities for NEM INSURANCE and NEIMETH INTERNATIONAL
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NEM and NEIMETH is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding NEM INSURANCE PLC and NEIMETH INTERNATIONAL PHARMACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEIMETH INTERNATIONAL 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 NEIMETH INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEIMETH INTERNATIONAL has no effect on the direction of NEM INSURANCE i.e., NEM INSURANCE and NEIMETH INTERNATIONAL go up and down completely randomly.
Pair Corralation between NEM INSURANCE and NEIMETH INTERNATIONAL
Assuming the 90 days trading horizon NEM INSURANCE PLC is expected to generate 0.97 times more return on investment than NEIMETH INTERNATIONAL. However, NEM INSURANCE PLC is 1.03 times less risky than NEIMETH INTERNATIONAL. It trades about 0.36 of its potential returns per unit of risk. NEIMETH INTERNATIONAL PHARMACEUTICAL is currently generating about 0.08 per unit of risk. If you would invest 805.00 in NEM INSURANCE PLC on September 19, 2024 and sell it today you would earn a total of 245.00 from holding NEM INSURANCE PLC or generate 30.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEM INSURANCE PLC vs. NEIMETH INTERNATIONAL PHARMACE
Performance |
| Timeline |
| NEM INSURANCE PLC |
| NEIMETH INTERNATIONAL |
NEM INSURANCE and NEIMETH INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and NEIMETH INTERNATIONAL
The main advantage of trading using opposite NEM INSURANCE and NEIMETH INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM INSURANCE position performs unexpectedly, NEIMETH INTERNATIONAL 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 NEIMETH INTERNATIONAL will offset losses from the drop in NEIMETH INTERNATIONAL'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 |
| NEIMETH INTERNATIONAL vs. GUINEA INSURANCE PLC | NEIMETH INTERNATIONAL vs. NEM INSURANCE PLC | NEIMETH INTERNATIONAL vs. UNION HOMES SAVINGS | NEIMETH INTERNATIONAL vs. VETIVA BANKING ETF |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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