Correlation Between UNION HOMES and AXAMANSARD INSURANCE
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By analyzing existing cross correlation between UNION HOMES REAL and AXAMANSARD INSURANCE PLC, you can compare the effects of market volatilities on UNION HOMES and AXAMANSARD 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 UNION HOMES with a short position of AXAMANSARD INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNION HOMES and AXAMANSARD INSURANCE.
Diversification Opportunities for UNION HOMES and AXAMANSARD INSURANCE
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNION and AXAMANSARD is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding UNION HOMES REAL and AXAMANSARD INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXAMANSARD INSURANCE PLC and UNION HOMES 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 UNION HOMES REAL are associated (or correlated) with AXAMANSARD INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXAMANSARD INSURANCE PLC has no effect on the direction of UNION HOMES i.e., UNION HOMES and AXAMANSARD INSURANCE go up and down completely randomly.
Pair Corralation between UNION HOMES and AXAMANSARD INSURANCE
Assuming the 90 days trading horizon UNION HOMES is expected to generate 2.66 times less return on investment than AXAMANSARD INSURANCE. But when comparing it to its historical volatility, UNION HOMES REAL is 1.81 times less risky than AXAMANSARD INSURANCE. It trades about 0.16 of its potential returns per unit of risk. AXAMANSARD INSURANCE PLC is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 915.00 in AXAMANSARD INSURANCE PLC on May 30, 2025 and sell it today you would earn a total of 755.00 from holding AXAMANSARD INSURANCE PLC or generate 82.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNION HOMES REAL vs. AXAMANSARD INSURANCE PLC
Performance |
| Timeline |
| UNION HOMES REAL |
| AXAMANSARD INSURANCE PLC |
UNION HOMES and AXAMANSARD INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNION HOMES and AXAMANSARD INSURANCE
The main advantage of trading using opposite UNION HOMES and AXAMANSARD INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNION HOMES position performs unexpectedly, AXAMANSARD 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 AXAMANSARD INSURANCE will offset losses from the drop in AXAMANSARD INSURANCE's long position.| UNION HOMES vs. BUA FOODS PLC | UNION HOMES vs. LIVINGTRUST MORTGAGE BANK | UNION HOMES vs. NIGERIAN BREWERIES PLC | UNION HOMES vs. ECOBANK TRANSNATIONAL INCORPORATED |
| AXAMANSARD INSURANCE vs. AFRICAN ALLIANCE INSURANCE | AXAMANSARD INSURANCE vs. UNION HOMES REAL | AXAMANSARD INSURANCE vs. CUSTODIAN INVESTMENT PLC | AXAMANSARD INSURANCE vs. FIDSON HEALTHCARE PLC |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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