Correlation Between JAIZ BANK and GUINEA INSURANCE
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By analyzing existing cross correlation between JAIZ BANK PLC and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on JAIZ BANK and GUINEA INSURANCE 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 GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAIZ BANK and GUINEA INSURANCE.
Diversification Opportunities for JAIZ BANK and GUINEA INSURANCE
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JAIZ and GUINEA is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding JAIZ BANK PLC and GUINEA INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUINEA INSURANCE 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 GUINEA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUINEA INSURANCE PLC has no effect on the direction of JAIZ BANK i.e., JAIZ BANK and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between JAIZ BANK and GUINEA INSURANCE
Assuming the 90 days trading horizon JAIZ BANK is expected to generate 1.4 times less return on investment than GUINEA INSURANCE. But when comparing it to its historical volatility, JAIZ BANK PLC is 1.26 times less risky than GUINEA INSURANCE. It trades about 0.08 of its potential returns per unit of risk. GUINEA INSURANCE PLC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 20.00 in GUINEA INSURANCE PLC on September 19, 2024 and sell it today you would earn a total of 52.00 from holding GUINEA INSURANCE PLC or generate 260.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.73% |
| Values | Daily Returns |
JAIZ BANK PLC vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| JAIZ BANK PLC |
| GUINEA INSURANCE PLC |
JAIZ BANK and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAIZ BANK and GUINEA INSURANCE
The main advantage of trading using opposite JAIZ BANK and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAIZ BANK position performs unexpectedly, GUINEA INSURANCE 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 GUINEA INSURANCE will offset losses from the drop in GUINEA INSURANCE's long position.| JAIZ BANK vs. GUINEA INSURANCE PLC | JAIZ BANK vs. SECURE ELECTRONIC TECHNOLOGY | JAIZ BANK vs. VFD GROUP | JAIZ BANK vs. IKEJA HOTELS PLC |
| GUINEA INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | GUINEA INSURANCE vs. VFD GROUP | GUINEA INSURANCE vs. IKEJA HOTELS PLC | GUINEA INSURANCE vs. VETIVA S P |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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