Correlation Between FIDELITY BANK and JAIZ BANK
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By analyzing existing cross correlation between FIDELITY BANK PLC and JAIZ BANK PLC, you can compare the effects of market volatilities on FIDELITY BANK and JAIZ 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 FIDELITY BANK with a short position of JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDELITY BANK and JAIZ BANK.
Diversification Opportunities for FIDELITY BANK and JAIZ BANK
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FIDELITY and JAIZ is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY BANK PLC and JAIZ BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAIZ BANK PLC and FIDELITY BANK 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 FIDELITY BANK PLC are associated (or correlated) with JAIZ BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAIZ BANK PLC has no effect on the direction of FIDELITY BANK i.e., FIDELITY BANK and JAIZ BANK go up and down completely randomly.
Pair Corralation between FIDELITY BANK and JAIZ BANK
Assuming the 90 days trading horizon FIDELITY BANK PLC is expected to generate 1.33 times more return on investment than JAIZ BANK. However, FIDELITY BANK is 1.33 times more volatile than JAIZ BANK PLC. It trades about 0.21 of its potential returns per unit of risk. JAIZ BANK PLC is currently generating about 0.09 per unit of risk. If you would invest 1,700 in FIDELITY BANK PLC on November 3, 2024 and sell it today you would earn a total of 245.00 from holding FIDELITY BANK PLC or generate 14.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIDELITY BANK PLC vs. JAIZ BANK PLC
Performance |
| Timeline |
| FIDELITY BANK PLC |
| JAIZ BANK PLC |
FIDELITY BANK and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDELITY BANK and JAIZ BANK
The main advantage of trading using opposite FIDELITY BANK and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDELITY BANK position performs unexpectedly, JAIZ 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 JAIZ BANK will offset losses from the drop in JAIZ BANK's long position.| FIDELITY BANK vs. GUINEA INSURANCE PLC | FIDELITY BANK vs. SECURE ELECTRONIC TECHNOLOGY | FIDELITY BANK vs. VFD GROUP | FIDELITY BANK vs. IKEJA HOTELS PLC |
| JAIZ BANK vs. BUA FOODS PLC | JAIZ BANK vs. INTERNATIONAL BREWERIES PLC | JAIZ BANK vs. STANDARD ALLIANCE INSURANCE | JAIZ BANK vs. C I LEASING |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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