Correlation Between AFRICAN ALLIANCE and WEMA BANK
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By analyzing existing cross correlation between AFRICAN ALLIANCE INSURANCE and WEMA BANK PLC, you can compare the effects of market volatilities on AFRICAN ALLIANCE and WEMA 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 AFRICAN ALLIANCE with a short position of WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFRICAN ALLIANCE and WEMA BANK.
Diversification Opportunities for AFRICAN ALLIANCE and WEMA BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFRICAN and WEMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFRICAN ALLIANCE INSURANCE and WEMA BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEMA BANK 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 WEMA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEMA BANK PLC has no effect on the direction of AFRICAN ALLIANCE i.e., AFRICAN ALLIANCE and WEMA BANK go up and down completely randomly.
Pair Corralation between AFRICAN ALLIANCE and WEMA BANK
If you would invest 900.00 in WEMA BANK PLC on October 26, 2024 and sell it today you would earn a total of 140.00 from holding WEMA BANK PLC or generate 15.56% 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. WEMA BANK PLC
Performance |
Timeline |
AFRICAN ALLIANCE INS |
WEMA BANK PLC |
AFRICAN ALLIANCE and WEMA BANK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AFRICAN ALLIANCE and WEMA BANK
The main advantage of trading using opposite AFRICAN ALLIANCE and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFRICAN ALLIANCE position performs unexpectedly, WEMA 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 WEMA BANK will offset losses from the drop in WEMA BANK's long position.AFRICAN ALLIANCE vs. STACO INSURANCE PLC | AFRICAN ALLIANCE vs. MULTI TREX INTEGRATED FOODS | AFRICAN ALLIANCE vs. ABC TRANSPORT PLC | AFRICAN ALLIANCE 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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