Correlation Between CONSOLIDATED HALLMARK and NORTHERN NIGERIA

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Can any of the company-specific risk be diversified away by investing in both CONSOLIDATED HALLMARK and NORTHERN NIGERIA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CONSOLIDATED HALLMARK and NORTHERN NIGERIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONSOLIDATED HALLMARK HOLDINGS and NORTHERN NIGERIA FLOUR, you can compare the effects of market volatilities on CONSOLIDATED HALLMARK and NORTHERN NIGERIA 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 NORTHERN NIGERIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED HALLMARK and NORTHERN NIGERIA.

Diversification Opportunities for CONSOLIDATED HALLMARK and NORTHERN NIGERIA

0.34
  Correlation Coefficient

Weak diversification

The 3 months correlation between CONSOLIDATED and NORTHERN is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK HOLDINGS and NORTHERN NIGERIA FLOUR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORTHERN NIGERIA FLOUR 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 HOLDINGS are associated (or correlated) with NORTHERN NIGERIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORTHERN NIGERIA FLOUR has no effect on the direction of CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and NORTHERN NIGERIA go up and down completely randomly.

Pair Corralation between CONSOLIDATED HALLMARK and NORTHERN NIGERIA

Assuming the 90 days trading horizon CONSOLIDATED HALLMARK HOLDINGS is expected to generate 2.88 times more return on investment than NORTHERN NIGERIA. However, CONSOLIDATED HALLMARK is 2.88 times more volatile than NORTHERN NIGERIA FLOUR. It trades about 0.08 of its potential returns per unit of risk. NORTHERN NIGERIA FLOUR is currently generating about -0.13 per unit of risk. If you would invest  376.00  in CONSOLIDATED HALLMARK HOLDINGS on September 24, 2025 and sell it today you would earn a total of  54.00  from holding CONSOLIDATED HALLMARK HOLDINGS or generate 14.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

CONSOLIDATED HALLMARK HOLDINGS  vs.  NORTHERN NIGERIA FLOUR

 Performance 
       Timeline  
CONSOLIDATED HALLMARK 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CONSOLIDATED HALLMARK HOLDINGS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, CONSOLIDATED HALLMARK disclosed solid returns over the last few months and may actually be approaching a breakup point.
NORTHERN NIGERIA FLOUR 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days NORTHERN NIGERIA FLOUR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

CONSOLIDATED HALLMARK and NORTHERN NIGERIA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CONSOLIDATED HALLMARK and NORTHERN NIGERIA

The main advantage of trading using opposite CONSOLIDATED HALLMARK and NORTHERN NIGERIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED HALLMARK position performs unexpectedly, NORTHERN NIGERIA 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 NORTHERN NIGERIA will offset losses from the drop in NORTHERN NIGERIA's long position.
The idea behind CONSOLIDATED HALLMARK HOLDINGS and NORTHERN NIGERIA FLOUR 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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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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