Correlation Between INDUSTRIAL MEDICAL and WEMA BANK
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and WEMA BANK PLC, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL with a short position of WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and WEMA BANK.
Diversification Opportunities for INDUSTRIAL MEDICAL and WEMA BANK
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INDUSTRIAL and WEMA is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES 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 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 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 INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and WEMA BANK go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and WEMA BANK
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL GASES is expected to generate 0.65 times more return on investment than WEMA BANK. However, INDUSTRIAL MEDICAL GASES is 1.53 times less risky than WEMA BANK. It trades about 0.16 of its potential returns per unit of risk. WEMA BANK PLC is currently generating about 0.09 per unit of risk. If you would invest 739.00 in INDUSTRIAL MEDICAL GASES on November 5, 2024 and sell it today you would earn a total of 3,061 from holding INDUSTRIAL MEDICAL GASES or generate 414.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.54% |
| Values | Daily Returns |
INDUSTRIAL MEDICAL GASES vs. WEMA BANK PLC
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| WEMA BANK PLC |
INDUSTRIAL MEDICAL and WEMA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and WEMA BANK
The main advantage of trading using opposite INDUSTRIAL MEDICAL and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL 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.| INDUSTRIAL MEDICAL vs. UNITED BANK FOR | INDUSTRIAL MEDICAL vs. ABBEY MORTGAGE BANK | INDUSTRIAL MEDICAL vs. GOLDEN GUINEA BREWERIES | INDUSTRIAL MEDICAL vs. LIVINGTRUST MORTGAGE BANK |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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