Correlation Between JAPAUL OIL and NEM INSURANCE
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By analyzing existing cross correlation between JAPAUL OIL MARITIME and NEM INSURANCE PLC, you can compare the effects of market volatilities on JAPAUL OIL 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 JAPAUL OIL with a short position of NEM INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAPAUL OIL and NEM INSURANCE.
Diversification Opportunities for JAPAUL OIL and NEM INSURANCE
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JAPAUL and NEM is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding JAPAUL OIL MARITIME 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 JAPAUL OIL 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 JAPAUL OIL MARITIME 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 JAPAUL OIL i.e., JAPAUL OIL and NEM INSURANCE go up and down completely randomly.
Pair Corralation between JAPAUL OIL and NEM INSURANCE
Assuming the 90 days trading horizon JAPAUL OIL is expected to generate 2.08 times less return on investment than NEM INSURANCE. But when comparing it to its historical volatility, JAPAUL OIL MARITIME is 1.0 times less risky than NEM INSURANCE. It trades about 0.14 of its potential returns per unit of risk. NEM INSURANCE PLC is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,470 in NEM INSURANCE PLC on June 1, 2025 and sell it today you would earn a total of 1,650 from holding NEM INSURANCE PLC or generate 112.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
JAPAUL OIL MARITIME vs. NEM INSURANCE PLC
Performance |
| Timeline |
| JAPAUL OIL MARITIME |
| NEM INSURANCE PLC |
JAPAUL OIL and NEM INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAPAUL OIL and NEM INSURANCE
The main advantage of trading using opposite JAPAUL OIL and NEM INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAPAUL OIL 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.| JAPAUL OIL vs. FORTIS GLOBAL INSURANCE | JAPAUL OIL vs. STERLING FINANCIAL HOLDINGS | JAPAUL OIL vs. AFRICAN ALLIANCE INSURANCE | JAPAUL OIL vs. ASO SAVINGS AND |
| NEM INSURANCE vs. STACO INSURANCE PLC | NEM INSURANCE vs. FORTIS GLOBAL INSURANCE | NEM INSURANCE vs. WEMA BANK PLC | NEM INSURANCE vs. AFRICAN ALLIANCE INSURANCE |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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