Correlation Between ABBEY MORTGAGE and VETIVA BANKING
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By analyzing existing cross correlation between ABBEY MORTGAGE BANK and VETIVA BANKING ETF, you can compare the effects of market volatilities on ABBEY MORTGAGE and VETIVA BANKING 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 ABBEY MORTGAGE with a short position of VETIVA BANKING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABBEY MORTGAGE and VETIVA BANKING.
Diversification Opportunities for ABBEY MORTGAGE and VETIVA BANKING
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABBEY and VETIVA is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ABBEY MORTGAGE BANK and VETIVA BANKING ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VETIVA BANKING ETF and ABBEY MORTGAGE 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 ABBEY MORTGAGE BANK are associated (or correlated) with VETIVA BANKING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VETIVA BANKING ETF has no effect on the direction of ABBEY MORTGAGE i.e., ABBEY MORTGAGE and VETIVA BANKING go up and down completely randomly.
Pair Corralation between ABBEY MORTGAGE and VETIVA BANKING
Assuming the 90 days trading horizon ABBEY MORTGAGE BANK is expected to generate 7.78 times more return on investment than VETIVA BANKING. However, ABBEY MORTGAGE is 7.78 times more volatile than VETIVA BANKING ETF. It trades about 0.3 of its potential returns per unit of risk. VETIVA BANKING ETF is currently generating about 0.21 per unit of risk. If you would invest 240.00 in ABBEY MORTGAGE BANK on September 19, 2024 and sell it today you would earn a total of 40.00 from holding ABBEY MORTGAGE BANK or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABBEY MORTGAGE BANK vs. VETIVA BANKING ETF
Performance |
| Timeline |
| ABBEY MORTGAGE BANK |
| VETIVA BANKING ETF |
ABBEY MORTGAGE and VETIVA BANKING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABBEY MORTGAGE and VETIVA BANKING
The main advantage of trading using opposite ABBEY MORTGAGE and VETIVA BANKING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABBEY MORTGAGE position performs unexpectedly, VETIVA BANKING 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 VETIVA BANKING will offset losses from the drop in VETIVA BANKING's long position.| ABBEY MORTGAGE vs. GUINEA INSURANCE PLC | ABBEY MORTGAGE vs. SECURE ELECTRONIC TECHNOLOGY | ABBEY MORTGAGE vs. VFD GROUP | ABBEY MORTGAGE vs. IKEJA HOTELS PLC |
| VETIVA BANKING vs. GUINEA INSURANCE PLC | VETIVA BANKING vs. SECURE ELECTRONIC TECHNOLOGY | VETIVA BANKING vs. VFD GROUP | VETIVA BANKING vs. IKEJA HOTELS 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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