Correlation Between NEM INSURANCE and UNITY BANK
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By analyzing existing cross correlation between NEM INSURANCE PLC and UNITY BANK PLC, you can compare the effects of market volatilities on NEM INSURANCE and UNITY BANK 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 UNITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and UNITY BANK.
Diversification Opportunities for NEM INSURANCE and UNITY BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NEM and UNITY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NEM INSURANCE PLC and UNITY BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITY BANK 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 UNITY BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITY BANK PLC has no effect on the direction of NEM INSURANCE i.e., NEM INSURANCE and UNITY BANK go up and down completely randomly.
Pair Corralation between NEM INSURANCE and UNITY BANK
If you would invest 1,070 in NEM INSURANCE PLC on October 12, 2024 and sell it today you would earn a total of 230.00 from holding NEM INSURANCE PLC or generate 21.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEM INSURANCE PLC vs. UNITY BANK PLC
Performance |
| Timeline |
| NEM INSURANCE PLC |
| UNITY BANK PLC |
NEM INSURANCE and UNITY BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and UNITY BANK
The main advantage of trading using opposite NEM INSURANCE and UNITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM INSURANCE position performs unexpectedly, UNITY BANK 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 UNITY BANK will offset losses from the drop in UNITY BANK's long position.| NEM INSURANCE vs. CUSTODIAN INVESTMENT PLC | NEM INSURANCE vs. WEMA BANK PLC | NEM INSURANCE vs. CHAMPION BREWERIES PLC | NEM INSURANCE vs. ECOBANK TRANSNATIONAL INCORPORATED |
| UNITY BANK vs. CHAMPION BREWERIES PLC | UNITY BANK vs. STACO INSURANCE PLC | UNITY BANK vs. ABBEY MORTGAGE BANK | UNITY BANK 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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