Correlation Between INDUSTRIAL MEDICAL and IKEJA HOTELS
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and IKEJA HOTELS PLC, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL and IKEJA HOTELS 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 IKEJA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and IKEJA HOTELS.
Diversification Opportunities for INDUSTRIAL MEDICAL and IKEJA HOTELS
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INDUSTRIAL and IKEJA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES and IKEJA HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKEJA HOTELS 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 IKEJA HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKEJA HOTELS PLC has no effect on the direction of INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and IKEJA HOTELS go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and IKEJA HOTELS
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL GASES is expected to generate 0.7 times more return on investment than IKEJA HOTELS. However, INDUSTRIAL MEDICAL GASES is 1.43 times less risky than IKEJA HOTELS. It trades about 0.23 of its potential returns per unit of risk. IKEJA HOTELS PLC is currently generating about 0.07 per unit of risk. If you would invest 816.00 in INDUSTRIAL MEDICAL GASES on September 14, 2024 and sell it today you would earn a total of 2,979 from holding INDUSTRIAL MEDICAL GASES or generate 365.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
INDUSTRIAL MEDICAL GASES vs. IKEJA HOTELS PLC
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| IKEJA HOTELS PLC |
INDUSTRIAL MEDICAL and IKEJA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and IKEJA HOTELS
The main advantage of trading using opposite INDUSTRIAL MEDICAL and IKEJA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL position performs unexpectedly, IKEJA HOTELS 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 IKEJA HOTELS will offset losses from the drop in IKEJA HOTELS's long position.| INDUSTRIAL MEDICAL vs. GUINEA INSURANCE PLC | INDUSTRIAL MEDICAL vs. SECURE ELECTRONIC TECHNOLOGY | INDUSTRIAL MEDICAL vs. VFD GROUP | INDUSTRIAL MEDICAL vs. IKEJA HOTELS PLC |
| IKEJA HOTELS vs. GUINEA INSURANCE PLC | IKEJA HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | IKEJA HOTELS vs. VFD GROUP | IKEJA HOTELS vs. VETIVA S P |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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