Correlation Between ACCESS BANK and STANDARD CHARTERED
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By analyzing existing cross correlation between ACCESS BANK GHANA and STANDARD CHARTERED BANK, you can compare the effects of market volatilities on ACCESS BANK and STANDARD CHARTERED 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 ACCESS BANK with a short position of STANDARD CHARTERED. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCESS BANK and STANDARD CHARTERED.
Diversification Opportunities for ACCESS BANK and STANDARD CHARTERED
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ACCESS and STANDARD is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ACCESS BANK GHANA and STANDARD CHARTERED BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANDARD CHARTERED BANK and ACCESS BANK 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 ACCESS BANK GHANA are associated (or correlated) with STANDARD CHARTERED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANDARD CHARTERED BANK has no effect on the direction of ACCESS BANK i.e., ACCESS BANK and STANDARD CHARTERED go up and down completely randomly.
Pair Corralation between ACCESS BANK and STANDARD CHARTERED
Assuming the 90 days trading horizon ACCESS BANK GHANA is expected to under-perform the STANDARD CHARTERED. In addition to that, ACCESS BANK is 1.25 times more volatile than STANDARD CHARTERED BANK. It trades about 0.0 of its total potential returns per unit of risk. STANDARD CHARTERED BANK is currently generating about 0.14 per unit of volatility. If you would invest 1,925 in STANDARD CHARTERED BANK on September 2, 2024 and sell it today you would earn a total of 375.00 from holding STANDARD CHARTERED BANK or generate 19.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACCESS BANK GHANA vs. STANDARD CHARTERED BANK
Performance |
| Timeline |
| ACCESS BANK GHANA |
| STANDARD CHARTERED BANK |
ACCESS BANK and STANDARD CHARTERED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACCESS BANK and STANDARD CHARTERED
The main advantage of trading using opposite ACCESS BANK and STANDARD CHARTERED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACCESS BANK position performs unexpectedly, STANDARD CHARTERED 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 STANDARD CHARTERED will offset losses from the drop in STANDARD CHARTERED's long position.The idea behind ACCESS BANK GHANA and STANDARD CHARTERED BANK 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.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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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