Correlation Between IKEJA HOTELS and UNITED BANK
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By analyzing existing cross correlation between IKEJA HOTELS PLC and UNITED BANK FOR, you can compare the effects of market volatilities on IKEJA HOTELS and UNITED 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 UNITED BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and UNITED BANK.
Diversification Opportunities for IKEJA HOTELS and UNITED BANK
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IKEJA and UNITED is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and UNITED BANK FOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED BANK FOR 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 UNITED BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED BANK FOR has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and UNITED BANK go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and UNITED BANK
Assuming the 90 days trading horizon IKEJA HOTELS PLC is expected to generate 1.46 times more return on investment than UNITED BANK. However, IKEJA HOTELS is 1.46 times more volatile than UNITED BANK FOR. It trades about 0.11 of its potential returns per unit of risk. UNITED BANK FOR is currently generating about 0.11 per unit of risk. If you would invest 96.00 in IKEJA HOTELS PLC on September 4, 2024 and sell it today you would earn a total of 649.00 from holding IKEJA HOTELS PLC or generate 676.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
IKEJA HOTELS PLC vs. UNITED BANK FOR
Performance |
| Timeline |
| IKEJA HOTELS PLC |
| UNITED BANK FOR |
IKEJA HOTELS and UNITED BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKEJA HOTELS and UNITED BANK
The main advantage of trading using opposite IKEJA HOTELS and UNITED BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, UNITED 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 UNITED BANK will offset losses from the drop in UNITED BANK's long position.| IKEJA HOTELS vs. GUINEA INSURANCE PLC | IKEJA HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | IKEJA HOTELS vs. AIRTEL AFRICA PLC | IKEJA HOTELS vs. VFD GROUP |
| UNITED BANK vs. CORONATION INSURANCE PLC | UNITED BANK vs. DN TYRE RUBBER | UNITED BANK vs. AXAMANSARD INSURANCE PLC | UNITED BANK vs. STERLING FINANCIAL HOLDINGS |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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