Correlation Between IKEJA HOTELS and LIVINGTRUST MORTGAGE
Specify exactly 2 symbols:
By analyzing existing cross correlation between IKEJA HOTELS PLC and LIVINGTRUST MORTGAGE BANK, you can compare the effects of market volatilities on IKEJA HOTELS and LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and LIVINGTRUST MORTGAGE.
Diversification Opportunities for IKEJA HOTELS and LIVINGTRUST MORTGAGE
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IKEJA and LIVINGTRUST is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and LIVINGTRUST MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIVINGTRUST MORTGAGE BANK 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 LIVINGTRUST MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIVINGTRUST MORTGAGE BANK has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and LIVINGTRUST MORTGAGE go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and LIVINGTRUST MORTGAGE
Assuming the 90 days trading horizon IKEJA HOTELS is expected to generate 89.29 times less return on investment than LIVINGTRUST MORTGAGE. But when comparing it to its historical volatility, IKEJA HOTELS PLC is 43.7 times less risky than LIVINGTRUST MORTGAGE. It trades about 0.12 of its potential returns per unit of risk. LIVINGTRUST MORTGAGE BANK is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 158.00 in LIVINGTRUST MORTGAGE BANK on September 19, 2024 and sell it today you would earn a total of 172.00 from holding LIVINGTRUST MORTGAGE BANK or generate 108.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.05% |
| Values | Daily Returns |
IKEJA HOTELS PLC vs. LIVINGTRUST MORTGAGE BANK
Performance |
| Timeline |
| IKEJA HOTELS PLC |
| LIVINGTRUST MORTGAGE BANK |
IKEJA HOTELS and LIVINGTRUST MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKEJA HOTELS and LIVINGTRUST MORTGAGE
The main advantage of trading using opposite IKEJA HOTELS and LIVINGTRUST MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE will offset losses from the drop in LIVINGTRUST MORTGAGE'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 |
| LIVINGTRUST MORTGAGE vs. GUINEA INSURANCE PLC | LIVINGTRUST MORTGAGE vs. SECURE ELECTRONIC TECHNOLOGY | LIVINGTRUST MORTGAGE vs. VFD GROUP | LIVINGTRUST MORTGAGE 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |