Correlation Between IKEJA HOTELS and NEWGOLD EXCHANGE
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By analyzing existing cross correlation between IKEJA HOTELS PLC and NEWGOLD EXCHANGE TRADED, you can compare the effects of market volatilities on IKEJA HOTELS and NEWGOLD EXCHANGE 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 NEWGOLD EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and NEWGOLD EXCHANGE.
Diversification Opportunities for IKEJA HOTELS and NEWGOLD EXCHANGE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IKEJA and NEWGOLD is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and NEWGOLD EXCHANGE TRADED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWGOLD EXCHANGE TRADED 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 NEWGOLD EXCHANGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWGOLD EXCHANGE TRADED has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and NEWGOLD EXCHANGE go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and NEWGOLD EXCHANGE
Assuming the 90 days trading horizon IKEJA HOTELS PLC is expected to generate 0.38 times more return on investment than NEWGOLD EXCHANGE. However, IKEJA HOTELS PLC is 2.65 times less risky than NEWGOLD EXCHANGE. It trades about 0.14 of its potential returns per unit of risk. NEWGOLD EXCHANGE TRADED is currently generating about 0.05 per unit of risk. If you would invest 770.00 in IKEJA HOTELS PLC on September 20, 2024 and sell it today you would earn a total of 145.00 from holding IKEJA HOTELS PLC or generate 18.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IKEJA HOTELS PLC vs. NEWGOLD EXCHANGE TRADED
Performance |
| Timeline |
| IKEJA HOTELS PLC |
| NEWGOLD EXCHANGE TRADED |
IKEJA HOTELS and NEWGOLD EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKEJA HOTELS and NEWGOLD EXCHANGE
The main advantage of trading using opposite IKEJA HOTELS and NEWGOLD EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, NEWGOLD EXCHANGE 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 NEWGOLD EXCHANGE will offset losses from the drop in NEWGOLD EXCHANGE'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 |
| NEWGOLD EXCHANGE vs. GUINEA INSURANCE PLC | NEWGOLD EXCHANGE vs. SECURE ELECTRONIC TECHNOLOGY | NEWGOLD EXCHANGE vs. VFD GROUP | NEWGOLD EXCHANGE 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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