Correlation Between NEM INSURANCE and VFD GROUP
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By analyzing existing cross correlation between NEM INSURANCE PLC and VFD GROUP, you can compare the effects of market volatilities on NEM INSURANCE and VFD GROUP 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 VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEM INSURANCE and VFD GROUP.
Diversification Opportunities for NEM INSURANCE and VFD GROUP
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NEM and VFD is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding NEM INSURANCE PLC and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP 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 VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of NEM INSURANCE i.e., NEM INSURANCE and VFD GROUP go up and down completely randomly.
Pair Corralation between NEM INSURANCE and VFD GROUP
Assuming the 90 days trading horizon NEM INSURANCE PLC is expected to generate 1.4 times more return on investment than VFD GROUP. However, NEM INSURANCE is 1.4 times more volatile than VFD GROUP. It trades about 0.29 of its potential returns per unit of risk. VFD GROUP is currently generating about -0.23 per unit of risk. If you would invest 1,470 in NEM INSURANCE PLC on June 2, 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 Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
NEM INSURANCE PLC vs. VFD GROUP
Performance |
| Timeline |
| NEM INSURANCE PLC |
| VFD GROUP |
NEM INSURANCE and VFD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEM INSURANCE and VFD GROUP
The main advantage of trading using opposite NEM INSURANCE and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEM INSURANCE position performs unexpectedly, VFD GROUP 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 VFD GROUP will offset losses from the drop in VFD GROUP's long position.| NEM INSURANCE vs. ZENITH BANK PLC | NEM INSURANCE vs. JAIZ BANK PLC | NEM INSURANCE vs. MULTI TREX INTEGRATED FOODS | NEM INSURANCE vs. UNITY BANK PLC |
| VFD GROUP vs. TOTALENERGIES MARKETING NIGERIA | VFD GROUP vs. AXAMANSARD INSURANCE PLC | VFD GROUP vs. FIDELITY BANK PLC | VFD GROUP vs. UNITED BANK FOR |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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