Correlation Between IKEJA HOTELS and JAIZ BANK
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By analyzing existing cross correlation between IKEJA HOTELS PLC and JAIZ BANK PLC, you can compare the effects of market volatilities on IKEJA HOTELS and JAIZ BANK 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 JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and JAIZ BANK.
Diversification Opportunities for IKEJA HOTELS and JAIZ BANK
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IKEJA and JAIZ is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and JAIZ BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAIZ BANK 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 JAIZ BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAIZ BANK PLC has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and JAIZ BANK go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and JAIZ BANK
Assuming the 90 days trading horizon IKEJA HOTELS PLC is expected to generate 0.98 times more return on investment than JAIZ BANK. However, IKEJA HOTELS PLC is 1.02 times less risky than JAIZ BANK. It trades about 0.1 of its potential returns per unit of risk. JAIZ BANK PLC is currently generating about 0.06 per unit of risk. If you would invest 342.00 in IKEJA HOTELS PLC on September 19, 2024 and sell it today you would earn a total of 573.00 from holding IKEJA HOTELS PLC or generate 167.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IKEJA HOTELS PLC vs. JAIZ BANK PLC
Performance |
| Timeline |
| IKEJA HOTELS PLC |
| JAIZ BANK PLC |
IKEJA HOTELS and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKEJA HOTELS and JAIZ BANK
The main advantage of trading using opposite IKEJA HOTELS and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, JAIZ BANK 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 JAIZ BANK will offset losses from the drop in JAIZ BANK's long position.| IKEJA HOTELS vs. GUINEA INSURANCE PLC | IKEJA HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | IKEJA HOTELS vs. VFD GROUP | IKEJA HOTELS vs. VETIVA S P |
| JAIZ BANK vs. GUINEA INSURANCE PLC | JAIZ BANK vs. SECURE ELECTRONIC TECHNOLOGY | JAIZ BANK vs. VFD GROUP | JAIZ BANK vs. IKEJA HOTELS 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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