Correlation Between NEM INSURANCE and LIVINGTRUST MORTGAGE
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By analyzing existing cross correlation between NEM INSURANCE PLC and LIVINGTRUST MORTGAGE BANK, you can compare the effects of market volatilities on NEM INSURANCE and LIVINGTRUST 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 NEM INSURANCE with a short position of LIVINGTRUST MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and LIVINGTRUST MORTGAGE.
Diversification Opportunities for NEM INSURANCE and LIVINGTRUST MORTGAGE
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NEM and LIVINGTRUST is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NEM INSURANCE PLC and LIVINGTRUST MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIVINGTRUST MORTGAGE BANK 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 LIVINGTRUST MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIVINGTRUST MORTGAGE BANK has no effect on the direction of NEM INSURANCE i.e., NEM INSURANCE and LIVINGTRUST MORTGAGE go up and down completely randomly.
Pair Corralation between NEM INSURANCE and LIVINGTRUST MORTGAGE
Assuming the 90 days trading horizon NEM INSURANCE PLC is expected to generate 1.58 times more return on investment than LIVINGTRUST MORTGAGE. However, NEM INSURANCE is 1.58 times more volatile than LIVINGTRUST MORTGAGE BANK. It trades about 0.19 of its potential returns per unit of risk. LIVINGTRUST MORTGAGE BANK is currently generating about -0.52 per unit of risk. If you would invest 2,540 in NEM INSURANCE PLC on June 5, 2025 and sell it today you would earn a total of 580.00 from holding NEM INSURANCE PLC or generate 22.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEM INSURANCE PLC vs. LIVINGTRUST MORTGAGE BANK
Performance |
| Timeline |
| NEM INSURANCE PLC |
| LIVINGTRUST MORTGAGE BANK |
NEM INSURANCE and LIVINGTRUST MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and LIVINGTRUST MORTGAGE
The main advantage of trading using opposite NEM INSURANCE and LIVINGTRUST MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM INSURANCE position performs unexpectedly, LIVINGTRUST 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 LIVINGTRUST MORTGAGE will offset losses from the drop in LIVINGTRUST MORTGAGE's long position.| NEM INSURANCE vs. GUINEA INSURANCE PLC | NEM INSURANCE vs. ALUMINIUM EXTRUSION IND | NEM INSURANCE vs. VITAFOAM NIGERIA PLC | NEM INSURANCE vs. JAPAUL OIL MARITIME |
| LIVINGTRUST MORTGAGE vs. GUINEA INSURANCE PLC | LIVINGTRUST MORTGAGE vs. ALUMINIUM EXTRUSION IND | LIVINGTRUST MORTGAGE vs. VITAFOAM NIGERIA PLC | LIVINGTRUST MORTGAGE vs. JAPAUL OIL MARITIME |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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