Correlation Between NEM INSURANCE and AIICO INSURANCE
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By analyzing existing cross correlation between NEM INSURANCE PLC and AIICO INSURANCE PLC, you can compare the effects of market volatilities on NEM INSURANCE and AIICO 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 NEM INSURANCE with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and AIICO INSURANCE.
Diversification Opportunities for NEM INSURANCE and AIICO INSURANCE
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NEM and AIICO is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding NEM INSURANCE PLC and AIICO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIICO INSURANCE PLC and NEM INSURANCE 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 NEM INSURANCE PLC are associated (or correlated) with AIICO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIICO INSURANCE PLC has no effect on the direction of NEM INSURANCE i.e., NEM INSURANCE and AIICO INSURANCE go up and down completely randomly.
Pair Corralation between NEM INSURANCE and AIICO INSURANCE
Assuming the 90 days trading horizon NEM INSURANCE is expected to generate 1.02 times less return on investment than AIICO INSURANCE. But when comparing it to its historical volatility, NEM INSURANCE PLC is 1.09 times less risky than AIICO INSURANCE. It trades about 0.2 of its potential returns per unit of risk. AIICO INSURANCE PLC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 169.00 in AIICO INSURANCE PLC on June 1, 2025 and sell it today you would earn a total of 235.00 from holding AIICO INSURANCE PLC or generate 139.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEM INSURANCE PLC vs. AIICO INSURANCE PLC
Performance |
| Timeline |
| NEM INSURANCE PLC |
| AIICO INSURANCE PLC |
NEM INSURANCE and AIICO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and AIICO INSURANCE
The main advantage of trading using opposite NEM INSURANCE and AIICO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM INSURANCE position performs unexpectedly, AIICO 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 AIICO INSURANCE will offset losses from the drop in AIICO INSURANCE's long position.| NEM INSURANCE vs. STACO INSURANCE PLC | NEM INSURANCE vs. FORTIS GLOBAL INSURANCE | NEM INSURANCE vs. WEMA BANK PLC | NEM INSURANCE vs. AFRICAN ALLIANCE INSURANCE |
| AIICO INSURANCE vs. BUA FOODS PLC | AIICO INSURANCE vs. STERLING FINANCIAL HOLDINGS | AIICO INSURANCE vs. STACO INSURANCE PLC | AIICO INSURANCE vs. INDUSTRIAL MEDICAL GASES |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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