Correlation Between ECOBANK GHANA and ACCESS BANK
Specify exactly 2 symbols:
By analyzing existing cross correlation between ECOBANK GHANA LIMITED and ACCESS BANK GHANA, you can compare the effects of market volatilities on ECOBANK GHANA and ACCESS 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 ECOBANK GHANA with a short position of ACCESS BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECOBANK GHANA and ACCESS BANK.
Diversification Opportunities for ECOBANK GHANA and ACCESS BANK
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ECOBANK and ACCESS is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ECOBANK GHANA LIMITED and ACCESS BANK GHANA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCESS BANK GHANA and ECOBANK GHANA 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 ECOBANK GHANA LIMITED are associated (or correlated) with ACCESS BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCESS BANK GHANA has no effect on the direction of ECOBANK GHANA i.e., ECOBANK GHANA and ACCESS BANK go up and down completely randomly.
Pair Corralation between ECOBANK GHANA and ACCESS BANK
Assuming the 90 days trading horizon ECOBANK GHANA is expected to generate 4.19 times less return on investment than ACCESS BANK. In addition to that, ECOBANK GHANA is 1.25 times more volatile than ACCESS BANK GHANA. It trades about 0.01 of its total potential returns per unit of risk. ACCESS BANK GHANA is currently generating about 0.03 per unit of volatility. If you would invest 401.00 in ACCESS BANK GHANA on September 2, 2024 and sell it today you would earn a total of 74.00 from holding ACCESS BANK GHANA or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECOBANK GHANA LIMITED vs. ACCESS BANK GHANA
Performance |
| Timeline |
| ECOBANK GHANA LIMITED |
| ACCESS BANK GHANA |
ECOBANK GHANA and ACCESS BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECOBANK GHANA and ACCESS BANK
The main advantage of trading using opposite ECOBANK GHANA and ACCESS BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECOBANK GHANA position performs unexpectedly, ACCESS 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 ACCESS BANK will offset losses from the drop in ACCESS BANK's long position.| ECOBANK GHANA vs. SAMBA FOODS LIMITED | ECOBANK GHANA vs. SIC INSURANCE ANY | ECOBANK GHANA vs. AGRICULTURAL DEVELOPMENT BANK |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |