Correlation Between JAIZ BANK and ABBEY MORTGAGE
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By analyzing existing cross correlation between JAIZ BANK PLC and ABBEY MORTGAGE BANK, you can compare the effects of market volatilities on JAIZ BANK and ABBEY MORTGAGE 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 JAIZ BANK with a short position of ABBEY MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAIZ BANK and ABBEY MORTGAGE.
Diversification Opportunities for JAIZ BANK and ABBEY MORTGAGE
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JAIZ and ABBEY is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding JAIZ BANK PLC and ABBEY MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABBEY MORTGAGE BANK and JAIZ BANK 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 JAIZ BANK PLC are associated (or correlated) with ABBEY MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABBEY MORTGAGE BANK has no effect on the direction of JAIZ BANK i.e., JAIZ BANK and ABBEY MORTGAGE go up and down completely randomly.
Pair Corralation between JAIZ BANK and ABBEY MORTGAGE
Assuming the 90 days trading horizon JAIZ BANK is expected to generate 14.15 times less return on investment than ABBEY MORTGAGE. But when comparing it to its historical volatility, JAIZ BANK PLC is 1.88 times less risky than ABBEY MORTGAGE. It trades about 0.02 of its potential returns per unit of risk. ABBEY MORTGAGE BANK is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 280.00 in ABBEY MORTGAGE BANK on October 26, 2024 and sell it today you would earn a total of 30.00 from holding ABBEY MORTGAGE BANK or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAIZ BANK PLC vs. ABBEY MORTGAGE BANK
Performance |
| Timeline |
| JAIZ BANK PLC |
| ABBEY MORTGAGE BANK |
JAIZ BANK and ABBEY MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAIZ BANK and ABBEY MORTGAGE
The main advantage of trading using opposite JAIZ BANK and ABBEY MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAIZ BANK position performs unexpectedly, ABBEY MORTGAGE 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 ABBEY MORTGAGE will offset losses from the drop in ABBEY MORTGAGE's long position.| JAIZ BANK vs. GUINEA INSURANCE PLC | JAIZ BANK vs. SECURE ELECTRONIC TECHNOLOGY | JAIZ BANK vs. VETIVA BANKING ETF | JAIZ BANK vs. BUA FOODS PLC |
| ABBEY MORTGAGE vs. TRANSCORP HOTELS PLC | ABBEY MORTGAGE vs. AFROMEDIA PLC | ABBEY MORTGAGE vs. UNITED BANK FOR | ABBEY MORTGAGE vs. INDUSTRIAL MEDICAL GASES |
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.
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