Correlation Between SECURE ELECTRONIC and NEM INSURANCE
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By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and NEM INSURANCE PLC, you can compare the effects of market volatilities on SECURE ELECTRONIC and NEM 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 SECURE ELECTRONIC with a short position of NEM INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and NEM INSURANCE.
Diversification Opportunities for SECURE ELECTRONIC and NEM INSURANCE
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between SECURE and NEM is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY and NEM INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEM INSURANCE PLC and SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY are associated (or correlated) with NEM INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEM INSURANCE PLC has no effect on the direction of SECURE ELECTRONIC i.e., SECURE ELECTRONIC and NEM INSURANCE go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and NEM INSURANCE
Assuming the 90 days trading horizon SECURE ELECTRONIC TECHNOLOGY is expected to under-perform the NEM INSURANCE. In addition to that, SECURE ELECTRONIC is 1.44 times more volatile than NEM INSURANCE PLC. It trades about -0.26 of its total potential returns per unit of risk. NEM INSURANCE PLC is currently generating about 0.02 per unit of volatility. If you would invest 860.00 in NEM INSURANCE PLC on August 31, 2024 and sell it today you would earn a total of 5.00 from holding NEM INSURANCE PLC or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. NEM INSURANCE PLC
Performance |
| Timeline |
| SECURE ELECTRONIC |
| NEM INSURANCE PLC |
SECURE ELECTRONIC and NEM INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and NEM INSURANCE
The main advantage of trading using opposite SECURE ELECTRONIC and NEM INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC position performs unexpectedly, NEM 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 NEM INSURANCE will offset losses from the drop in NEM INSURANCE's long position.| SECURE ELECTRONIC vs. VFD GROUP | SECURE ELECTRONIC vs. AFROMEDIA PLC | SECURE ELECTRONIC vs. DEAP CAPITAL MANAGEMENT | SECURE ELECTRONIC vs. NPF MICRO FINANCE |
| NEM INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | NEM INSURANCE vs. VFD GROUP | NEM INSURANCE vs. AFROMEDIA PLC | NEM INSURANCE vs. DEAP CAPITAL MANAGEMENT |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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