Correlation Between INDUSTRIAL MEDICAL and JAIZ BANK
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and JAIZ BANK PLC, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL and JAIZ 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 JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and JAIZ BANK.
Diversification Opportunities for INDUSTRIAL MEDICAL and JAIZ BANK
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between INDUSTRIAL and JAIZ is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES and JAIZ BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAIZ 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 JAIZ BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAIZ BANK PLC has no effect on the direction of INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and JAIZ BANK go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and JAIZ BANK
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL GASES is expected to generate 0.66 times more return on investment than JAIZ BANK. However, INDUSTRIAL MEDICAL GASES is 1.51 times less risky than JAIZ BANK. It trades about 0.23 of its potential returns per unit of risk. JAIZ BANK PLC is currently generating about 0.07 per unit of risk. If you would invest 816.00 in INDUSTRIAL MEDICAL GASES on September 2, 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 | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
INDUSTRIAL MEDICAL GASES vs. JAIZ BANK PLC
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| JAIZ BANK PLC |
INDUSTRIAL MEDICAL and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and JAIZ BANK
The main advantage of trading using opposite INDUSTRIAL MEDICAL and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL position performs unexpectedly, JAIZ 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 JAIZ BANK will offset losses from the drop in JAIZ BANK's long position.| INDUSTRIAL MEDICAL vs. AFRICAN ALLIANCE INSURANCE | INDUSTRIAL MEDICAL vs. CONSOLIDATED HALLMARK INSURANCE | INDUSTRIAL MEDICAL vs. MULTIVERSE MINING AND | INDUSTRIAL MEDICAL vs. ABC TRANSPORT 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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