Correlation Between ABC TRANSPORT and JAIZ BANK
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By analyzing existing cross correlation between ABC TRANSPORT PLC and JAIZ BANK PLC, you can compare the effects of market volatilities on ABC TRANSPORT and JAIZ BANK 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 ABC TRANSPORT with a short position of JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABC TRANSPORT and JAIZ BANK.
Diversification Opportunities for ABC TRANSPORT and JAIZ BANK
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABC and JAIZ is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ABC TRANSPORT PLC and JAIZ BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAIZ BANK PLC and ABC TRANSPORT 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 ABC TRANSPORT PLC are associated (or correlated) with JAIZ BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAIZ BANK PLC has no effect on the direction of ABC TRANSPORT i.e., ABC TRANSPORT and JAIZ BANK go up and down completely randomly.
Pair Corralation between ABC TRANSPORT and JAIZ BANK
Assuming the 90 days trading horizon ABC TRANSPORT PLC is expected to under-perform the JAIZ BANK. In addition to that, ABC TRANSPORT is 1.9 times more volatile than JAIZ BANK PLC. It trades about -0.05 of its total potential returns per unit of risk. JAIZ BANK PLC is currently generating about 0.26 per unit of volatility. If you would invest 234.00 in JAIZ BANK PLC on October 26, 2024 and sell it today you would earn a total of 66.00 from holding JAIZ BANK PLC or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABC TRANSPORT PLC vs. JAIZ BANK PLC
Performance |
| Timeline |
| ABC TRANSPORT PLC |
| JAIZ BANK PLC |
ABC TRANSPORT and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABC TRANSPORT and JAIZ BANK
The main advantage of trading using opposite ABC TRANSPORT and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABC TRANSPORT position performs unexpectedly, JAIZ BANK 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 JAIZ BANK will offset losses from the drop in JAIZ BANK's long position.| ABC TRANSPORT vs. CONSOLIDATED HALLMARK INSURANCE | ABC TRANSPORT vs. ZENITH BANK PLC | ABC TRANSPORT vs. C I LEASING | ABC TRANSPORT vs. JAIZ BANK PLC |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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