Correlation Between CONSOLIDATED HALLMARK and JAIZ BANK

Can any of the company-specific risk be diversified away by investing in both CONSOLIDATED HALLMARK and JAIZ BANK at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CONSOLIDATED HALLMARK and JAIZ BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CONSOLIDATED HALLMARK INSURANCE and JAIZ BANK PLC, you can compare the effects of market volatilities on CONSOLIDATED HALLMARK and JAIZ BANK 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 CONSOLIDATED HALLMARK with a short position of JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED HALLMARK and JAIZ BANK.

Diversification Opportunities for CONSOLIDATED HALLMARK and JAIZ BANK

-0.04

Correlation Coefficient

CONSOLIDATED HALLMARK  JAIZ BANK

Good diversification

The 3 months correlation between CONSOLIDATED and JAIZ is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK INSURANC and JAIZ BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAIZ BANK PLC and CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK INSURANCE are associated (or correlated) with JAIZ BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAIZ BANK PLC has no effect on the direction of CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and JAIZ BANK go up and down completely randomly.

Pair Corralation between CONSOLIDATED HALLMARK and JAIZ BANK

Assuming the 90 days trading horizon CONSOLIDATED HALLMARK INSURANCE is expected to generate 1.14 times more return on investment than JAIZ BANK. However, CONSOLIDATED HALLMARK is 1.14 times more volatile than JAIZ BANK PLC. It trades about 0.08 of its potential returns per unit of risk. JAIZ BANK PLC is currently generating about 0.06 per unit of risk. If you would invest  115.00  in CONSOLIDATED HALLMARK INSURANCE on September 4, 2024 and sell it today you would earn a total of  100.00  from holding CONSOLIDATED HALLMARK INSURANCE or generate 86.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CONSOLIDATED HALLMARK INSURANC  vs.  JAIZ BANK PLC

CONSOLIDATED HALLMARK

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CONSOLIDATED HALLMARK INSURANCE are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent essential indicators, CONSOLIDATED HALLMARK disclosed solid returns over the last few months and may actually be approaching a breakup point.

JAIZ BANK PLC

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JAIZ BANK PLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, JAIZ BANK may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with CONSOLIDATED HALLMARK and JAIZ BANK

The main advantage of trading using opposite CONSOLIDATED HALLMARK and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED HALLMARK position performs unexpectedly, JAIZ BANK 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 JAIZ BANK will offset losses from the drop in JAIZ BANK's long position.

The idea behind CONSOLIDATED HALLMARK INSURANCE and JAIZ BANK PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.