Correlation Between INTERNATIONAL ENERGY and IKEJA HOTELS
Specify exactly 2 symbols:
By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and IKEJA HOTELS PLC, you can compare the effects of market volatilities on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY with a short position of IKEJA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and IKEJA HOTELS.
Diversification Opportunities for INTERNATIONAL ENERGY and IKEJA HOTELS
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between INTERNATIONAL and IKEJA is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE 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 INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY INSURANCE 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 INTERNATIONAL ENERGY i.e., INTERNATIONAL ENERGY and IKEJA HOTELS go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and IKEJA HOTELS
Assuming the 90 days trading horizon INTERNATIONAL ENERGY INSURANCE is expected to under-perform the IKEJA HOTELS. But the stock apears to be less risky and, when comparing its historical volatility, INTERNATIONAL ENERGY INSURANCE is 1.05 times less risky than IKEJA HOTELS. The stock trades about -0.08 of its potential returns per unit of risk. The IKEJA HOTELS PLC is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,030 in IKEJA HOTELS PLC on February 7, 2025 and sell it today you would earn a total of 200.00 from holding IKEJA HOTELS PLC or generate 19.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. IKEJA HOTELS PLC
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| IKEJA HOTELS PLC |
INTERNATIONAL ENERGY and IKEJA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and IKEJA HOTELS
The main advantage of trading using opposite INTERNATIONAL ENERGY and IKEJA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY 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.| INTERNATIONAL ENERGY vs. ECOBANK TRANSNATIONAL INCORPORATED | INTERNATIONAL ENERGY vs. CUSTODIAN INVESTMENT PLC | INTERNATIONAL ENERGY vs. AFRICAN ALLIANCE INSURANCE | INTERNATIONAL ENERGY vs. ASO SAVINGS AND |
| IKEJA HOTELS vs. ABC TRANSPORT PLC | IKEJA HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | IKEJA HOTELS vs. TRANSCORP HOTELS PLC | IKEJA HOTELS vs. C I LEASING |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |