Correlation Between CONSOLIDATED HALLMARK and CORNERSTONE INSURANCE

Can any of the company-specific risk be diversified away by investing in both CONSOLIDATED HALLMARK and CORNERSTONE INSURANCE 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 CORNERSTONE INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for CONSOLIDATED HALLMARK and CORNERSTONE INSURANCE

0.9

Correlation Coefficient

CONSOLIDATED HALLMARK  CORNERSTONE INSURANCE

Almost no diversification

The 3 months correlation between CONSOLIDATED and CORNERSTONE is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK HOLDINGS and CORNERSTONE INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNERSTONE INSURANCE 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 HOLDINGS are associated (or correlated) with CORNERSTONE INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNERSTONE INSURANCE PLC has no effect on the direction of CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and CORNERSTONE INSURANCE go up and down completely randomly.

Pair Corralation between CONSOLIDATED HALLMARK and CORNERSTONE INSURANCE

Assuming the 90 days trading horizon CONSOLIDATED HALLMARK is expected to generate 2.59 times less return on investment than CORNERSTONE INSURANCE. But when comparing it to its historical volatility, CONSOLIDATED HALLMARK HOLDINGS is 1.07 times less risky than CORNERSTONE INSURANCE. It trades about 0.06 of its potential returns per unit of risk. CORNERSTONE INSURANCE PLC is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  403.00  in CORNERSTONE INSURANCE PLC on July 13, 2025 and sell it today you would earn a total of  218.00  from holding CORNERSTONE INSURANCE PLC or generate 54.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

CONSOLIDATED HALLMARK HOLDINGS  vs.  CORNERSTONE INSURANCE PLC

CONSOLIDATED HALLMARK

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CONSOLIDATED HALLMARK HOLDINGS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain essential indicators, CONSOLIDATED HALLMARK disclosed solid returns over the last few months and may actually be approaching a breakup point.

CORNERSTONE INSURANCE PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CORNERSTONE INSURANCE PLC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, CORNERSTONE INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CONSOLIDATED HALLMARK and CORNERSTONE INSURANCE

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

The idea behind CONSOLIDATED HALLMARK HOLDINGS and CORNERSTONE INSURANCE 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.