Correlation Between INTERNATIONAL ENERGY and JAIZ BANK
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By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and JAIZ BANK PLC, you can compare the effects of market volatilities on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY with a short position of JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and JAIZ BANK.
Diversification Opportunities for INTERNATIONAL ENERGY and JAIZ BANK
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between INTERNATIONAL and JAIZ is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE 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 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 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 INTERNATIONAL ENERGY i.e., INTERNATIONAL ENERGY and JAIZ BANK go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and JAIZ BANK
Assuming the 90 days trading horizon INTERNATIONAL ENERGY is expected to generate 2.79 times less return on investment than JAIZ BANK. But when comparing it to its historical volatility, INTERNATIONAL ENERGY INSURANCE is 1.27 times less risky than JAIZ BANK. It trades about 0.03 of its potential returns per unit of risk. JAIZ BANK PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 130.00 in JAIZ BANK PLC on August 31, 2024 and sell it today you would earn a total of 107.00 from holding JAIZ BANK PLC or generate 82.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. JAIZ BANK PLC
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| JAIZ BANK PLC |
INTERNATIONAL ENERGY and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and JAIZ BANK
The main advantage of trading using opposite INTERNATIONAL ENERGY and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY 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.| INTERNATIONAL ENERGY vs. UNITED BANK FOR | INTERNATIONAL ENERGY vs. STERLING FINANCIAL HOLDINGS | INTERNATIONAL ENERGY vs. AFROMEDIA PLC | INTERNATIONAL ENERGY vs. CORNERSTONE INSURANCE PLC |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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