Correlation Between AFRICAN ALLIANCE and IKEJA HOTELS
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By analyzing existing cross correlation between AFRICAN ALLIANCE INSURANCE and IKEJA HOTELS PLC, you can compare the effects of market volatilities on AFRICAN ALLIANCE and IKEJA HOTELS 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 AFRICAN ALLIANCE with a short position of IKEJA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFRICAN ALLIANCE and IKEJA HOTELS.
Diversification Opportunities for AFRICAN ALLIANCE and IKEJA HOTELS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFRICAN and IKEJA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFRICAN ALLIANCE INSURANCE and IKEJA HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKEJA HOTELS PLC and AFRICAN ALLIANCE 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 AFRICAN ALLIANCE INSURANCE are associated (or correlated) with IKEJA HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKEJA HOTELS PLC has no effect on the direction of AFRICAN ALLIANCE i.e., AFRICAN ALLIANCE and IKEJA HOTELS go up and down completely randomly.
Pair Corralation between AFRICAN ALLIANCE and IKEJA HOTELS
If you would invest 770.00 in IKEJA HOTELS PLC on October 24, 2024 and sell it today you would earn a total of 580.00 from holding IKEJA HOTELS PLC or generate 75.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFRICAN ALLIANCE INSURANCE vs. IKEJA HOTELS PLC
Performance |
| Timeline |
| AFRICAN ALLIANCE INS |
| IKEJA HOTELS PLC |
AFRICAN ALLIANCE and IKEJA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFRICAN ALLIANCE and IKEJA HOTELS
The main advantage of trading using opposite AFRICAN ALLIANCE and IKEJA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFRICAN ALLIANCE position performs unexpectedly, IKEJA HOTELS 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 IKEJA HOTELS will offset losses from the drop in IKEJA HOTELS's long position.| AFRICAN ALLIANCE vs. BUA FOODS PLC | AFRICAN ALLIANCE vs. WEMA BANK PLC | AFRICAN ALLIANCE vs. ZENITH BANK PLC | AFRICAN ALLIANCE vs. ABBEY MORTGAGE BANK |
| IKEJA HOTELS vs. GUINEA INSURANCE PLC | IKEJA HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | IKEJA HOTELS vs. SFS REAL ESTATE | IKEJA HOTELS vs. VFD GROUP |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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