Correlation Between CONSOLIDATED HALLMARK and ABBEY MORTGAGE
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By analyzing existing cross correlation between CONSOLIDATED HALLMARK INSURANCE and ABBEY MORTGAGE BANK, you can compare the effects of market volatilities on CONSOLIDATED HALLMARK and ABBEY MORTGAGE 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 CONSOLIDATED HALLMARK with a short position of ABBEY MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED HALLMARK and ABBEY MORTGAGE.
Diversification Opportunities for CONSOLIDATED HALLMARK and ABBEY MORTGAGE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONSOLIDATED and ABBEY is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK INSURANC and ABBEY MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABBEY MORTGAGE BANK and CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK INSURANCE are associated (or correlated) with ABBEY MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABBEY MORTGAGE BANK has no effect on the direction of CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and ABBEY MORTGAGE go up and down completely randomly.
Pair Corralation between CONSOLIDATED HALLMARK and ABBEY MORTGAGE
Assuming the 90 days trading horizon CONSOLIDATED HALLMARK INSURANCE is expected to under-perform the ABBEY MORTGAGE. But the stock apears to be less risky and, when comparing its historical volatility, CONSOLIDATED HALLMARK INSURANCE is 1.48 times less risky than ABBEY MORTGAGE. The stock trades about -0.07 of its potential returns per unit of risk. The ABBEY MORTGAGE BANK is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 430.00 in ABBEY MORTGAGE BANK on March 25, 2025 and sell it today you would earn a total of 160.00 from holding ABBEY MORTGAGE BANK or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONSOLIDATED HALLMARK INSURANC vs. ABBEY MORTGAGE BANK
Performance |
| Timeline |
| CONSOLIDATED HALLMARK |
| ABBEY MORTGAGE BANK |
CONSOLIDATED HALLMARK and ABBEY MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSOLIDATED HALLMARK and ABBEY MORTGAGE
The main advantage of trading using opposite CONSOLIDATED HALLMARK and ABBEY MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED HALLMARK position performs unexpectedly, ABBEY MORTGAGE 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 ABBEY MORTGAGE will offset losses from the drop in ABBEY MORTGAGE's long position.The idea behind CONSOLIDATED HALLMARK INSURANCE and ABBEY MORTGAGE BANK pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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