Correlation Between FIDELITY BANK and CORONATION INSURANCE
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By analyzing existing cross correlation between FIDELITY BANK PLC and CORONATION INSURANCE PLC, you can compare the effects of market volatilities on FIDELITY BANK and CORONATION INSURANCE 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 CORONATION INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDELITY BANK and CORONATION INSURANCE.
Diversification Opportunities for FIDELITY BANK and CORONATION INSURANCE
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIDELITY and CORONATION is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY BANK PLC and CORONATION INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORONATION INSURANCE 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 CORONATION INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORONATION INSURANCE PLC has no effect on the direction of FIDELITY BANK i.e., FIDELITY BANK and CORONATION INSURANCE go up and down completely randomly.
Pair Corralation between FIDELITY BANK and CORONATION INSURANCE
Assuming the 90 days trading horizon FIDELITY BANK PLC is expected to generate 0.89 times more return on investment than CORONATION INSURANCE. However, FIDELITY BANK PLC is 1.13 times less risky than CORONATION INSURANCE. It trades about 0.09 of its potential returns per unit of risk. CORONATION INSURANCE PLC is currently generating about 0.08 per unit of risk. 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 |
FIDELITY BANK PLC vs. CORONATION INSURANCE PLC
Performance |
| Timeline |
| FIDELITY BANK PLC |
| CORONATION INSURANCE PLC |
FIDELITY BANK and CORONATION INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDELITY BANK and CORONATION INSURANCE
The main advantage of trading using opposite FIDELITY BANK and CORONATION INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDELITY BANK position performs unexpectedly, CORONATION INSURANCE 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 CORONATION INSURANCE will offset losses from the drop in CORONATION INSURANCE's long position.| FIDELITY BANK vs. SECURE ELECTRONIC TECHNOLOGY | FIDELITY BANK vs. VFD GROUP | FIDELITY BANK vs. AFROMEDIA PLC | FIDELITY BANK vs. DEAP CAPITAL MANAGEMENT |
| CORONATION INSURANCE vs. CORNERSTONE INSURANCE PLC | CORONATION INSURANCE vs. ASO SAVINGS AND | CORONATION INSURANCE vs. AXAMANSARD INSURANCE PLC | CORONATION INSURANCE vs. GUINEA 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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