Correlation Between IKEJA HOTELS and FIDSON HEALTHCARE
Specify exactly 2 symbols:
By analyzing existing cross correlation between IKEJA HOTELS PLC and FIDSON HEALTHCARE PLC, you can compare the effects of market volatilities on IKEJA HOTELS and FIDSON HEALTHCARE 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 FIDSON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and FIDSON HEALTHCARE.
Diversification Opportunities for IKEJA HOTELS and FIDSON HEALTHCARE
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IKEJA and FIDSON is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and FIDSON HEALTHCARE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDSON HEALTHCARE 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 FIDSON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDSON HEALTHCARE PLC has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and FIDSON HEALTHCARE go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and FIDSON HEALTHCARE
Assuming the 90 days trading horizon IKEJA HOTELS PLC is expected to generate 1.91 times more return on investment than FIDSON HEALTHCARE. However, IKEJA HOTELS is 1.91 times more volatile than FIDSON HEALTHCARE PLC. It trades about 0.05 of its potential returns per unit of risk. FIDSON HEALTHCARE PLC is currently generating about 0.01 per unit of risk. If you would invest 1,035 in IKEJA HOTELS PLC on December 8, 2024 and sell it today you would earn a total of 35.00 from holding IKEJA HOTELS PLC or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IKEJA HOTELS PLC vs. FIDSON HEALTHCARE PLC
Performance |
| Timeline |
| IKEJA HOTELS PLC |
| FIDSON HEALTHCARE PLC |
IKEJA HOTELS and FIDSON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKEJA HOTELS and FIDSON HEALTHCARE
The main advantage of trading using opposite IKEJA HOTELS and FIDSON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, FIDSON HEALTHCARE 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 FIDSON HEALTHCARE will offset losses from the drop in FIDSON HEALTHCARE's long position.| IKEJA HOTELS vs. TRANSCORP HOTELS PLC | ||
| IKEJA HOTELS vs. UNIVERSAL INSURANCE PANY | ||
| IKEJA HOTELS vs. CONOIL PLC | ||
| IKEJA HOTELS vs. GOLDLINK INSURANCE PLC |
| FIDSON HEALTHCARE vs. VETIVA INDUSTRIAL ETF | ||
| FIDSON HEALTHCARE vs. ASO SAVINGS AND | ||
| FIDSON HEALTHCARE vs. CUSTODIAN INVESTMENT PLC | ||
| FIDSON HEALTHCARE vs. UNITY BANK 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |