Correlation Between CONSOLIDATED HALLMARK and SFS REAL

Can any of the company-specific risk be diversified away by investing in both CONSOLIDATED HALLMARK and SFS REAL 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 SFS REAL 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 SFS REAL ESTATE, you can compare the effects of market volatilities on CONSOLIDATED HALLMARK and SFS REAL 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 SFS REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED HALLMARK and SFS REAL.

Diversification Opportunities for CONSOLIDATED HALLMARK and SFS REAL

0.49

Correlation Coefficient

CONSOLIDATED HALLMARK  SFS REAL

Very weak diversification

The 3 months correlation between CONSOLIDATED and SFS is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED HALLMARK INSURANC and SFS REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFS REAL ESTATE 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 SFS REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFS REAL ESTATE has no effect on the direction of CONSOLIDATED HALLMARK i.e., CONSOLIDATED HALLMARK and SFS REAL go up and down completely randomly.

Pair Corralation between CONSOLIDATED HALLMARK and SFS REAL

Assuming the 90 days trading horizon CONSOLIDATED HALLMARK is expected to generate 1.5 times less return on investment than SFS REAL. In addition to that, CONSOLIDATED HALLMARK is 1.85 times more volatile than SFS REAL ESTATE. It trades about 0.07 of its total potential returns per unit of risk. SFS REAL ESTATE is currently generating about 0.19 per unit of volatility. If you would invest  20,600  in SFS REAL ESTATE on May 1, 2025 and sell it today you would earn a total of  4,325  from holding SFS REAL ESTATE or generate 21.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

CONSOLIDATED HALLMARK INSURANC  vs.  SFS REAL ESTATE

CONSOLIDATED HALLMARK

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CONSOLIDATED HALLMARK INSURANCE are ranked lower than 5 (%) 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.

SFS REAL ESTATE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SFS REAL ESTATE are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent forward indicators, SFS REAL unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CONSOLIDATED HALLMARK and SFS REAL

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

The idea behind CONSOLIDATED HALLMARK INSURANCE and SFS REAL ESTATE 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.