So What’s Better: National General Holdings Corp ($NGHC) Or Arch Capital Group Ltd. ($ACGL)?

2019-08-20 | Welcome! Today we compared how two different stocks in the Property-Casualty Insurers industry are trading: National General Holdings Corp and Arch Capital Group Ltd.. While these two companies may have very different market capitalizations and balance sheets, they are worth comparing given how they are in the same sector. Below you’ll see how the different technical indicators differ between these two stocks, and we’ll also show what Trading View thinks of them based on the technical analysis. But before we get ahead of ourselves, please note that this is technical analysis only (ie. analyzing how these companies are trading, not digging into the company fundamentals), and therefore you should not rely only on this to guide you on whether you should buy or sell anything – take it with a grain of salt only, and pay attention to the disclaimer below. With that said, many traders find value in technical analysis and others even swear by it, so if that is you, I hope my analysis will be of use to you. Let’s get to it…

First things first: during its last day of trading, National General Holdings Corp opened at 24.17, got to a maximum price of 24.23 and dropped to as low as 23.89 before finishing the session at 23.92. In total there were 165400 shares traded, which is enough to conduct our analysis. Compare that now to Arch Capital Group Ltd., which opened at 39.86, had a high of 40.2, a low of 39.8, closed at 40.07 and had a total volume of 855600.

VOLUME ANALYSIS: Generally, the higher the volume indicators are, the better – you need liquidity to trade, after all. All of the volume indicators are as follows… (click here for an explanation on volume)

Volume Indicator National General Holdings Corp Arch Capital Group Ltd.
Accumulation-distribution index 274.68088 121.6669
on-balance volume -23.9 -39.75
chaikin money flow

10.33333 1.35294
force index

0.2068 1.6936
ease of movement rating

0.00965 0.0088
volume-price trend

0.47765 5.1096
negative volume index

1000.0 1000.0

VOLATILITY ANALYSIS: Now to compare the volatility between these two companies… (click here for an explanation on volatility)

Volatility Indicator National General Holdings Corp Arch Capital Group Ltd.
Average true range 0.29349 0.26317
Bolinger bands 24.28311 40.58622
Upper bollinger band 23.06689 38.15378
Lower bollinger band

23.89 39.8
Bollinger high band indicator

1.0 nan
Bollinger high low indicator

nan 1.0
Central keltner channel

24.09667 39.95333
High band keltner channel

24.03667 39.61333
Low band keltner channel

24.15667 40.29333
High band keltner channel indicator

1.0 1.0
Low band keltner channel indicator

1.0 1.0
Donchain channel high band

23.89 39.8
Donchain channel low band

23.89 39.8
Donchain channel high band indicator

1.0 nan
Donchain channel low band indicator

1.0 1.0

TREND ANALYSIS: Now for the most interesting and detailed part, the trend. Where is the stock actually going? Let’s compare the indicators… (click here for an explanation on trend)

Trend Indicator National General Holdings Corp Arch Capital Group Ltd.
Moving Average Convergence Divergence (MACD) trend_macd -0.01929
MACD signal -0.00536 -0.01072
MACD difference -0.00429 -0.00858
fast Exponential Moving Average (EMA) indicator

23.89 39.8
slow Exponential Moving Average (EMA) indicator

23.89 39.8
Average Directional Movement Index (ADX)

unknown unknown
ADX positive

20.0 20.0
ADX negative

20.0 20.0
positive Vortex Indicator (VI)

1.0 1.0
negative VI

1.0 1.0
trend vortex difference

0.04597 0.10538

2.01207 8.67184
Mass Index (MI)

1.0 1.0
Commodity Channel Index (CCI)

-66.66667 -66.66667
Detrended Price Oscillator (DPO)

-0.46084 -4.52365
KST Oscillator (KST)

19.66959 128.23477
KST Oscillator (KST Signal)

19.66959 128.23477
KST difference

-4.5883 -6.09474
Ichimoku rating

24.2 40.03
Ichimoku B rating

24.2 40.03
Ichimoku visual trend A

23.83472 36.27802
Ichimoku visual trend B

23.7522 37.23119
Aroon Indicator (AI)

4.0 4.0
AI indicator down

4.0 4.0
AI difference

-4.0 -4.0

MOMENTUM ANALYSIS: What about momentum? Let’s dive into it… (click here for an explanation on momentum)

Momentum Indicator National General Holdings Corp Arch Capital Group Ltd.
Relative Strength Index (RSI) 50.0 50.0
Money Flow Index (MFI) 100.0 100.0
True Strength Index (TSI) 100.0 100.0
ultimate oscillator

62.20517 98.691
stochastic oscillator

566.66667 117.64706
stochastic oscillator signal

566.66667 117.64706
Williams %R rating

466.66667 17.64706
awesome oscillator

-0.02292 -0.13675

RETURNS: That’s all for technical analysis. Now let’s just list the returns for National General Holdings Corp and Arch Capital Group Ltd..

Daily return 1.96696 12.82348
Daily log return -1.81631 -2.18449
Cumulative return -1.79992 -2.1608

So there you have it: our deep, grueling analysis comparing National General Holdings Corp and Arch Capital Group Ltd. together. But what does all of the above mean? Various technical indicators above are positive, while others are negative, and if we want to decide overall if the technical analysis indicates a bullish or bearish chart, we have to consider all of them together. That’s what the Trading View widget below can do, so let’s see what it says considering all these indicators. First, here’s National General Holdings Corp:

The verdict above will consider all these technical indicators and consider which are strong and weak, and then put them all together to come up with a conclusion stating whether NGHC is strong or weak. Again – this is not a reliable indication of whether National General Holdings Corp is a good investment! None of these indicators consider the company fundamentals. All of this data is based on how it trades only. Now with that out of the way, let’s compare it with Arch Capital Group Ltd.

So there you have it. We hope you have found this analysis useful, and if you see any errors or have any feedback, please comment below.

How can you profit off trading these 2 companies and other stocks like it? First, check out the Beat The Market Analyzer software – this is worth its weight in gold. Some other great services for earning income from trading and investing are Dividend Stocks (an outstanding resource for anyone interested in high dividend paying stocks), Microcap Millionaires (the best site online for profiting off micro-cap stocks) and Trading Code (an extremely powerful system for profiting off trading).

DISCLAIMER: We are not registered investment advisers and the above analysis should be taken at face value only. We strongly advise against buying or selling anything based solely on our analysis above, and are not responsible for any losses that you may incur if you choose make any investment decisions based on the above.

Gary Ivenchuck

Gary is a stock trading expert and is responsible for covering technical analysis news on Logistics Business Review. Recently he has been working tirelessly to analyse stocks for our readers, and is always available to hear from people asking for stock analysis.
Gary Ivenchuck

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