Correlation Between CONSOLIDATED HALLMARK and NEM INSURANCE
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By analyzing existing cross correlation between CONSOLIDATED HALLMARK INSURANCE and NEM INSURANCE PLC, you can compare the effects of market volatilities on CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK with a short position of NEM INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED HALLMARK and NEM INSURANCE.
Diversification Opportunities for CONSOLIDATED HALLMARK and NEM INSURANCE
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CONSOLIDATED and NEM is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK INSURANC 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 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 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 CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and NEM INSURANCE go up and down completely randomly.
Pair Corralation between CONSOLIDATED HALLMARK and NEM INSURANCE
Assuming the 90 days trading horizon CONSOLIDATED HALLMARK is expected to generate 7.32 times less return on investment than NEM INSURANCE. In addition to that, CONSOLIDATED HALLMARK is 1.09 times more volatile than NEM INSURANCE PLC. It trades about 0.03 of its total potential returns per unit of risk. NEM INSURANCE PLC is currently generating about 0.22 per unit of volatility. If you would invest 1,360 in NEM INSURANCE PLC on April 22, 2025 and sell it today you would earn a total of 640.00 from holding NEM INSURANCE PLC or generate 47.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONSOLIDATED HALLMARK INSURANC vs. NEM INSURANCE PLC
Performance |
| Timeline |
| CONSOLIDATED HALLMARK |
| NEM INSURANCE PLC |
CONSOLIDATED HALLMARK and NEM INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSOLIDATED HALLMARK and NEM INSURANCE
The main advantage of trading using opposite CONSOLIDATED HALLMARK and NEM INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED HALLMARK 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.| CONSOLIDATED HALLMARK vs. GUINEA INSURANCE PLC | CONSOLIDATED HALLMARK vs. ALUMINIUM EXTRUSION IND | CONSOLIDATED HALLMARK vs. VITAFOAM NIGERIA PLC | CONSOLIDATED HALLMARK vs. JAPAUL OIL MARITIME |
| NEM INSURANCE vs. AFROMEDIA PLC | NEM INSURANCE vs. STERLING FINANCIAL HOLDINGS | NEM INSURANCE vs. INDUSTRIAL MEDICAL GASES | NEM INSURANCE vs. INTERNATIONAL BREWERIES 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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