Correlation Between INTERNATIONAL ENERGY and WEMA BANK
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By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and WEMA BANK PLC, you can compare the effects of market volatilities on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY with a short position of WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and WEMA BANK.
Diversification Opportunities for INTERNATIONAL ENERGY and WEMA BANK
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERNATIONAL and WEMA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE 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 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 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 INTERNATIONAL ENERGY i.e., INTERNATIONAL ENERGY and WEMA BANK go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and WEMA BANK
Assuming the 90 days trading horizon INTERNATIONAL ENERGY INSURANCE is expected to generate 1.04 times more return on investment than WEMA BANK. However, INTERNATIONAL ENERGY is 1.04 times more volatile than WEMA BANK PLC. It trades about 0.09 of its potential returns per unit of risk. WEMA BANK PLC is currently generating about 0.08 per unit of risk. If you would invest 41.00 in INTERNATIONAL ENERGY INSURANCE on September 5, 2024 and sell it today you would earn a total of 95.00 from holding INTERNATIONAL ENERGY INSURANCE or generate 231.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.28% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. WEMA BANK PLC
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| WEMA BANK PLC |
INTERNATIONAL ENERGY and WEMA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and WEMA BANK
The main advantage of trading using opposite INTERNATIONAL ENERGY and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY 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.| INTERNATIONAL ENERGY vs. GUINEA INSURANCE PLC | INTERNATIONAL ENERGY vs. VFD GROUP | INTERNATIONAL ENERGY vs. VETIVA S P | INTERNATIONAL ENERGY vs. GREENWICH ASSET ETF |
| WEMA BANK vs. NEM INSURANCE PLC | WEMA BANK vs. INTERNATIONAL ENERGY INSURANCE | WEMA BANK vs. CORNERSTONE INSURANCE PLC | WEMA BANK vs. UNION HOMES SAVINGS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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