Correlation Between IKEJA HOTELS and WEMA BANK
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By analyzing existing cross correlation between IKEJA HOTELS PLC and WEMA BANK PLC, you can compare the effects of market volatilities on IKEJA HOTELS and WEMA 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 WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and WEMA BANK.
Diversification Opportunities for IKEJA HOTELS and WEMA BANK
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IKEJA and WEMA is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and WEMA BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEMA 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 WEMA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEMA BANK PLC has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and WEMA BANK go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and WEMA BANK
Assuming the 90 days trading horizon IKEJA HOTELS is expected to generate 1.72 times less return on investment than WEMA BANK. In addition to that, IKEJA HOTELS is 1.56 times more volatile than WEMA BANK PLC. It trades about 0.06 of its total potential returns per unit of risk. WEMA BANK PLC is currently generating about 0.17 per unit of volatility. If you would invest 790.00 in WEMA BANK PLC on September 13, 2024 and sell it today you would earn a total of 70.00 from holding WEMA BANK PLC or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IKEJA HOTELS PLC vs. WEMA BANK PLC
Performance |
| Timeline |
| IKEJA HOTELS PLC |
| WEMA BANK PLC |
IKEJA HOTELS and WEMA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKEJA HOTELS and WEMA BANK
The main advantage of trading using opposite IKEJA HOTELS and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, WEMA 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 WEMA BANK will offset losses from the drop in WEMA BANK's long position.| IKEJA HOTELS vs. MULTI TREX INTEGRATED FOODS | IKEJA HOTELS vs. MULTIVERSE MINING AND | IKEJA HOTELS vs. GOLDEN GUINEA BREWERIES | IKEJA HOTELS vs. INDUSTRIAL MEDICAL GASES |
| WEMA BANK vs. GUINEA INSURANCE PLC | WEMA BANK vs. SECURE ELECTRONIC TECHNOLOGY | WEMA BANK vs. VFD GROUP | WEMA 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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