Correlation Between NEM INSURANCE and NPF MICRO
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By analyzing existing cross correlation between NEM INSURANCE PLC and NPF MICRO FINANCE, you can compare the effects of market volatilities on NEM INSURANCE and NPF MICRO 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 NPF MICRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and NPF MICRO.
Diversification Opportunities for NEM INSURANCE and NPF MICRO
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NEM and NPF is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding NEM INSURANCE PLC and NPF MICRO FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NPF MICRO FINANCE 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 NPF MICRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NPF MICRO FINANCE has no effect on the direction of NEM INSURANCE i.e., NEM INSURANCE and NPF MICRO go up and down completely randomly.
Pair Corralation between NEM INSURANCE and NPF MICRO
Assuming the 90 days trading horizon NEM INSURANCE PLC is expected to generate 1.21 times more return on investment than NPF MICRO. However, NEM INSURANCE is 1.21 times more volatile than NPF MICRO FINANCE. It trades about 0.03 of its potential returns per unit of risk. NPF MICRO FINANCE is currently generating about 0.0 per unit of risk. If you would invest 812.00 in NEM INSURANCE PLC on September 5, 2024 and sell it today you would earn a total of 48.00 from holding NEM INSURANCE PLC or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
NEM INSURANCE PLC vs. NPF MICRO FINANCE
Performance |
| Timeline |
| NEM INSURANCE PLC |
| NPF MICRO FINANCE |
NEM INSURANCE and NPF MICRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and NPF MICRO
The main advantage of trading using opposite NEM INSURANCE and NPF MICRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM INSURANCE position performs unexpectedly, NPF MICRO 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 NPF MICRO will offset losses from the drop in NPF MICRO's long position.| NEM INSURANCE vs. GUINEA INSURANCE PLC | NEM INSURANCE vs. VFD GROUP | NEM INSURANCE vs. VETIVA S P | NEM INSURANCE vs. GREENWICH ASSET ETF |
| NPF MICRO vs. GOLDLINK INSURANCE PLC | NPF MICRO vs. AIICO INSURANCE PLC | NPF MICRO vs. AXAMANSARD INSURANCE PLC | NPF MICRO vs. NEM INSURANCE PLC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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