Correlation Between AIICO INSURANCE and FIDELITY BANK
Specify exactly 2 symbols:
By analyzing existing cross correlation between AIICO INSURANCE PLC and FIDELITY BANK PLC, you can compare the effects of market volatilities on AIICO INSURANCE 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 AIICO INSURANCE with a short position of FIDELITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIICO INSURANCE and FIDELITY BANK.
Diversification Opportunities for AIICO INSURANCE and FIDELITY BANK
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AIICO and FIDELITY is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding AIICO INSURANCE 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 AIICO INSURANCE 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 AIICO INSURANCE 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 AIICO INSURANCE i.e., AIICO INSURANCE and FIDELITY BANK go up and down completely randomly.
Pair Corralation between AIICO INSURANCE and FIDELITY BANK
Assuming the 90 days trading horizon AIICO INSURANCE is expected to generate 1.39 times less return on investment than FIDELITY BANK. But when comparing it to its historical volatility, AIICO INSURANCE PLC is 1.07 times less risky than FIDELITY BANK. It trades about 0.07 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 | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIICO INSURANCE PLC vs. FIDELITY BANK PLC
Performance |
| Timeline |
| AIICO INSURANCE PLC |
| FIDELITY BANK PLC |
AIICO INSURANCE and FIDELITY BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIICO INSURANCE and FIDELITY BANK
The main advantage of trading using opposite AIICO INSURANCE and FIDELITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIICO INSURANCE 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.| AIICO INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | AIICO INSURANCE vs. VFD GROUP | AIICO INSURANCE vs. AFROMEDIA PLC | AIICO INSURANCE vs. DEAP CAPITAL MANAGEMENT |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |