Correlation Between IKEJA HOTELS and CONSOLIDATED HALLMARK
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By analyzing existing cross correlation between IKEJA HOTELS PLC and CONSOLIDATED HALLMARK INSURANCE, you can compare the effects of market volatilities on IKEJA HOTELS and CONSOLIDATED HALLMARK 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 IKEJA HOTELS with a short position of CONSOLIDATED HALLMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and CONSOLIDATED HALLMARK.
Diversification Opportunities for IKEJA HOTELS and CONSOLIDATED HALLMARK
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IKEJA and CONSOLIDATED is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and CONSOLIDATED HALLMARK INSURANC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED HALLMARK and IKEJA HOTELS 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 IKEJA HOTELS PLC are associated (or correlated) with CONSOLIDATED HALLMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED HALLMARK has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and CONSOLIDATED HALLMARK go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and CONSOLIDATED HALLMARK
Assuming the 90 days trading horizon IKEJA HOTELS is expected to generate 2.86 times less return on investment than CONSOLIDATED HALLMARK. But when comparing it to its historical volatility, IKEJA HOTELS PLC is 1.8 times less risky than CONSOLIDATED HALLMARK. It trades about 0.09 of its potential returns per unit of risk. CONSOLIDATED HALLMARK INSURANCE is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 152.00 in CONSOLIDATED HALLMARK INSURANCE on September 13, 2024 and sell it today you would earn a total of 70.00 from holding CONSOLIDATED HALLMARK INSURANCE or generate 46.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.41% |
Values | Daily Returns |
IKEJA HOTELS PLC vs. CONSOLIDATED HALLMARK INSURANC
Performance |
Timeline |
IKEJA HOTELS PLC |
CONSOLIDATED HALLMARK |
IKEJA HOTELS and CONSOLIDATED HALLMARK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IKEJA HOTELS and CONSOLIDATED HALLMARK
The main advantage of trading using opposite IKEJA HOTELS and CONSOLIDATED HALLMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK will offset losses from the drop in CONSOLIDATED HALLMARK's long position.IKEJA HOTELS vs. GUINEA INSURANCE PLC | IKEJA HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | IKEJA HOTELS vs. VFD GROUP | IKEJA HOTELS vs. VETIVA S P |
CONSOLIDATED HALLMARK vs. SOVEREIGN TRUST INSURANCE | CONSOLIDATED HALLMARK vs. GUINEA INSURANCE PLC | CONSOLIDATED HALLMARK vs. VETIVA INDUSTRIAL ETF | CONSOLIDATED HALLMARK vs. BUA FOODS 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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