Correlation Between FIDELITY BANK and NPF MICRO
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By analyzing existing cross correlation between FIDELITY BANK PLC and NPF MICRO FINANCE, you can compare the effects of market volatilities on FIDELITY BANK and NPF MICRO 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 NPF MICRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDELITY BANK and NPF MICRO.
Diversification Opportunities for FIDELITY BANK and NPF MICRO
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FIDELITY and NPF is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY BANK PLC and NPF MICRO FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NPF MICRO FINANCE 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 NPF MICRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NPF MICRO FINANCE has no effect on the direction of FIDELITY BANK i.e., FIDELITY BANK and NPF MICRO go up and down completely randomly.
Pair Corralation between FIDELITY BANK and NPF MICRO
Assuming the 90 days trading horizon FIDELITY BANK PLC is expected to generate 1.23 times more return on investment than NPF MICRO. However, FIDELITY BANK is 1.23 times more volatile than NPF MICRO FINANCE. It trades about 0.18 of its potential returns per unit of risk. NPF MICRO FINANCE is currently generating about -0.05 per unit of risk. If you would invest 1,075 in FIDELITY BANK PLC on September 12, 2024 and sell it today you would earn a total of 480.00 from holding FIDELITY BANK PLC or generate 44.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
FIDELITY BANK PLC vs. NPF MICRO FINANCE
Performance |
| Timeline |
| FIDELITY BANK PLC |
| NPF MICRO FINANCE |
FIDELITY BANK and NPF MICRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDELITY BANK and NPF MICRO
The main advantage of trading using opposite FIDELITY BANK and NPF MICRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDELITY BANK position performs unexpectedly, NPF MICRO 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 NPF MICRO will offset losses from the drop in NPF MICRO's long position.| FIDELITY BANK vs. ECOBANK TRANSNATIONAL INCORPORATED | FIDELITY BANK vs. JAIZ BANK PLC | FIDELITY BANK vs. INTERNATIONAL ENERGY INSURANCE | FIDELITY BANK vs. MULTI TREX INTEGRATED FOODS |
| NPF MICRO vs. CORONATION INSURANCE PLC | NPF MICRO vs. MULTIVERSE MINING AND | NPF MICRO vs. MULTI TREX INTEGRATED FOODS | NPF MICRO vs. CONSOLIDATED HALLMARK INSURANCE |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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