Correlation Between INDUSTRIAL MEDICAL and FIDELITY BANK
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and FIDELITY BANK PLC, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL and FIDELITY 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 INDUSTRIAL MEDICAL with a short position of FIDELITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and FIDELITY BANK.
Diversification Opportunities for INDUSTRIAL MEDICAL and FIDELITY BANK
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INDUSTRIAL and FIDELITY is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES and FIDELITY BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDELITY BANK PLC and INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL GASES are associated (or correlated) with FIDELITY BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDELITY BANK PLC has no effect on the direction of INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and FIDELITY BANK go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and FIDELITY BANK
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL GASES is expected to generate 0.68 times more return on investment than FIDELITY BANK. However, INDUSTRIAL MEDICAL GASES is 1.47 times less risky than FIDELITY BANK. It trades about 0.17 of its potential returns per unit of risk. FIDELITY BANK PLC is currently generating about 0.09 per unit of risk. If you would invest 680.00 in INDUSTRIAL MEDICAL GASES on August 31, 2024 and sell it today you would earn a total of 3,115 from holding INDUSTRIAL MEDICAL GASES or generate 458.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.02% |
| Values | Daily Returns |
INDUSTRIAL MEDICAL GASES vs. FIDELITY BANK PLC
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| FIDELITY BANK PLC |
INDUSTRIAL MEDICAL and FIDELITY BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and FIDELITY BANK
The main advantage of trading using opposite INDUSTRIAL MEDICAL and FIDELITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL position performs unexpectedly, FIDELITY 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 FIDELITY BANK will offset losses from the drop in FIDELITY BANK's long position.| INDUSTRIAL MEDICAL vs. SECURE ELECTRONIC TECHNOLOGY | INDUSTRIAL MEDICAL vs. VFD GROUP | INDUSTRIAL MEDICAL vs. AFROMEDIA PLC | INDUSTRIAL MEDICAL vs. DEAP CAPITAL MANAGEMENT |
| FIDELITY BANK vs. SECURE ELECTRONIC TECHNOLOGY | FIDELITY BANK vs. VFD GROUP | FIDELITY BANK vs. AFROMEDIA PLC | FIDELITY BANK vs. DEAP CAPITAL MANAGEMENT |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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