Correlation Between FIDELITY BANK and LIVINGTRUST MORTGAGE
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By analyzing existing cross correlation between FIDELITY BANK PLC and LIVINGTRUST MORTGAGE BANK, you can compare the effects of market volatilities on FIDELITY BANK and LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDELITY BANK and LIVINGTRUST MORTGAGE.
Diversification Opportunities for FIDELITY BANK and LIVINGTRUST MORTGAGE
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FIDELITY and LIVINGTRUST is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY BANK PLC and LIVINGTRUST MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIVINGTRUST MORTGAGE BANK 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 LIVINGTRUST MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIVINGTRUST MORTGAGE BANK has no effect on the direction of FIDELITY BANK i.e., FIDELITY BANK and LIVINGTRUST MORTGAGE go up and down completely randomly.
Pair Corralation between FIDELITY BANK and LIVINGTRUST MORTGAGE
Assuming the 90 days trading horizon FIDELITY BANK is expected to generate 4.7 times less return on investment than LIVINGTRUST MORTGAGE. But when comparing it to its historical volatility, FIDELITY BANK PLC is 1.92 times less risky than LIVINGTRUST MORTGAGE. It trades about 0.17 of its potential returns per unit of risk. LIVINGTRUST MORTGAGE BANK is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 363.00 in LIVINGTRUST MORTGAGE BANK on October 26, 2024 and sell it today you would earn a total of 118.00 from holding LIVINGTRUST MORTGAGE BANK or generate 32.51% 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. LIVINGTRUST MORTGAGE BANK
Performance |
| Timeline |
| FIDELITY BANK PLC |
| LIVINGTRUST MORTGAGE BANK |
FIDELITY BANK and LIVINGTRUST MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDELITY BANK and LIVINGTRUST MORTGAGE
The main advantage of trading using opposite FIDELITY BANK and LIVINGTRUST MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDELITY BANK position performs unexpectedly, LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE will offset losses from the drop in LIVINGTRUST MORTGAGE's long position.| FIDELITY BANK vs. GUINEA INSURANCE PLC | FIDELITY BANK vs. SECURE ELECTRONIC TECHNOLOGY | FIDELITY BANK vs. VETIVA BANKING ETF | FIDELITY BANK vs. BUA FOODS PLC |
| LIVINGTRUST MORTGAGE vs. INDUSTRIAL MEDICAL GASES | LIVINGTRUST MORTGAGE vs. FIDELITY BANK PLC | LIVINGTRUST MORTGAGE vs. CONSOLIDATED HALLMARK INSURANCE | LIVINGTRUST MORTGAGE vs. AXAMANSARD INSURANCE PLC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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