Correlation Between IKEJA HOTELS and CUSTODIAN INVESTMENT
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By analyzing existing cross correlation between IKEJA HOTELS PLC and CUSTODIAN INVESTMENT PLC, you can compare the effects of market volatilities on IKEJA HOTELS and CUSTODIAN INVESTMENT 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 IKEJA HOTELS with a short position of CUSTODIAN INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and CUSTODIAN INVESTMENT.
Diversification Opportunities for IKEJA HOTELS and CUSTODIAN INVESTMENT
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IKEJA and CUSTODIAN is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and CUSTODIAN INVESTMENT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUSTODIAN INVESTMENT PLC and IKEJA HOTELS 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 IKEJA HOTELS PLC are associated (or correlated) with CUSTODIAN INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUSTODIAN INVESTMENT PLC has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and CUSTODIAN INVESTMENT go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and CUSTODIAN INVESTMENT
Assuming the 90 days trading horizon IKEJA HOTELS PLC is expected to under-perform the CUSTODIAN INVESTMENT. In addition to that, IKEJA HOTELS is 1.37 times more volatile than CUSTODIAN INVESTMENT PLC. It trades about -0.11 of its total potential returns per unit of risk. CUSTODIAN INVESTMENT PLC is currently generating about 0.15 per unit of volatility. If you would invest 1,200 in CUSTODIAN INVESTMENT PLC on September 3, 2024 and sell it today you would earn a total of 95.00 from holding CUSTODIAN INVESTMENT PLC or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IKEJA HOTELS PLC vs. CUSTODIAN INVESTMENT PLC
Performance |
| Timeline |
| IKEJA HOTELS PLC |
| CUSTODIAN INVESTMENT PLC |
IKEJA HOTELS and CUSTODIAN INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKEJA HOTELS and CUSTODIAN INVESTMENT
The main advantage of trading using opposite IKEJA HOTELS and CUSTODIAN INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, CUSTODIAN INVESTMENT 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 CUSTODIAN INVESTMENT will offset losses from the drop in CUSTODIAN INVESTMENT's long position.| IKEJA HOTELS vs. STANDARD ALLIANCE INSURANCE | IKEJA HOTELS vs. INTERNATIONAL BREWERIES PLC | IKEJA HOTELS vs. ASO SAVINGS AND | IKEJA HOTELS vs. CHAMPION BREWERIES PLC |
| CUSTODIAN INVESTMENT vs. CORONATION INSURANCE PLC | CUSTODIAN INVESTMENT vs. ECOBANK TRANSNATIONAL INCORPORATED | CUSTODIAN INVESTMENT vs. IKEJA HOTELS PLC | CUSTODIAN INVESTMENT vs. STACO 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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