Correlation Between JAIZ BANK and ABC TRANSPORT
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By analyzing existing cross correlation between JAIZ BANK PLC and ABC TRANSPORT PLC, you can compare the effects of market volatilities on JAIZ BANK and ABC TRANSPORT 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 ABC TRANSPORT. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAIZ BANK and ABC TRANSPORT.
Diversification Opportunities for JAIZ BANK and ABC TRANSPORT
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JAIZ and ABC is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding JAIZ BANK PLC and ABC TRANSPORT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABC TRANSPORT PLC 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 ABC TRANSPORT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABC TRANSPORT PLC has no effect on the direction of JAIZ BANK i.e., JAIZ BANK and ABC TRANSPORT go up and down completely randomly.
Pair Corralation between JAIZ BANK and ABC TRANSPORT
Assuming the 90 days trading horizon JAIZ BANK PLC is expected to generate 0.53 times more return on investment than ABC TRANSPORT. However, JAIZ BANK PLC is 1.9 times less risky than ABC TRANSPORT. It trades about 0.26 of its potential returns per unit of risk. ABC TRANSPORT PLC is currently generating about -0.05 per unit of risk. If you would invest 234.00 in JAIZ BANK PLC on October 26, 2024 and sell it today you would earn a total of 66.00 from holding JAIZ BANK PLC or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAIZ BANK PLC vs. ABC TRANSPORT PLC
Performance |
| Timeline |
| JAIZ BANK PLC |
| ABC TRANSPORT PLC |
JAIZ BANK and ABC TRANSPORT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAIZ BANK and ABC TRANSPORT
The main advantage of trading using opposite JAIZ BANK and ABC TRANSPORT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAIZ BANK position performs unexpectedly, ABC TRANSPORT 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 ABC TRANSPORT will offset losses from the drop in ABC TRANSPORT'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 |
| ABC TRANSPORT vs. CONSOLIDATED HALLMARK INSURANCE | ABC TRANSPORT vs. ZENITH BANK PLC | ABC TRANSPORT vs. C I LEASING | ABC TRANSPORT vs. JAIZ BANK PLC |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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