Correlation Between AFROMEDIA PLC and FIDELITY BANK
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By analyzing existing cross correlation between AFROMEDIA PLC and FIDELITY BANK PLC, you can compare the effects of market volatilities on AFROMEDIA PLC and FIDELITY 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 AFROMEDIA PLC with a short position of FIDELITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFROMEDIA PLC and FIDELITY BANK.
Diversification Opportunities for AFROMEDIA PLC and FIDELITY BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFROMEDIA and FIDELITY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFROMEDIA PLC and FIDELITY BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDELITY BANK PLC and AFROMEDIA PLC 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 AFROMEDIA PLC are associated (or correlated) with FIDELITY BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDELITY BANK PLC has no effect on the direction of AFROMEDIA PLC i.e., AFROMEDIA PLC and FIDELITY BANK go up and down completely randomly.
Pair Corralation between AFROMEDIA PLC and FIDELITY BANK
Assuming the 90 days trading horizon AFROMEDIA PLC is expected to generate 5.89 times less return on investment than FIDELITY BANK. But when comparing it to its historical volatility, AFROMEDIA PLC is 3.19 times less risky than FIDELITY BANK. It trades about 0.05 of its potential returns per unit of risk. FIDELITY BANK PLC is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 579.00 in FIDELITY BANK PLC on August 31, 2024 and sell it today you would earn a total of 951.00 from holding FIDELITY BANK PLC or generate 164.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.91% |
| Values | Daily Returns |
AFROMEDIA PLC vs. FIDELITY BANK PLC
Performance |
| Timeline |
| AFROMEDIA PLC |
| FIDELITY BANK PLC |
AFROMEDIA PLC and FIDELITY BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFROMEDIA PLC and FIDELITY BANK
The main advantage of trading using opposite AFROMEDIA PLC and FIDELITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFROMEDIA PLC position performs unexpectedly, FIDELITY 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 FIDELITY BANK will offset losses from the drop in FIDELITY BANK's long position.| AFROMEDIA PLC vs. SOVEREIGN TRUST INSURANCE | AFROMEDIA PLC vs. GUINEA INSURANCE PLC | AFROMEDIA PLC vs. BUA FOODS PLC | AFROMEDIA PLC vs. MULTIVERSE MINING AND |
| FIDELITY BANK vs. SECURE ELECTRONIC TECHNOLOGY | FIDELITY BANK vs. VFD GROUP | FIDELITY BANK vs. AFROMEDIA PLC | FIDELITY BANK vs. DEAP CAPITAL MANAGEMENT |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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