Correlation Between JAIZ BANK and INTERNATIONAL BREWERIES
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By analyzing existing cross correlation between JAIZ BANK PLC and INTERNATIONAL BREWERIES PLC, you can compare the effects of market volatilities on JAIZ BANK and INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAIZ BANK and INTERNATIONAL BREWERIES.
Diversification Opportunities for JAIZ BANK and INTERNATIONAL BREWERIES
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JAIZ and INTERNATIONAL is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding JAIZ BANK PLC and INTERNATIONAL BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL BREWERIES has no effect on the direction of JAIZ BANK i.e., JAIZ BANK and INTERNATIONAL BREWERIES go up and down completely randomly.
Pair Corralation between JAIZ BANK and INTERNATIONAL BREWERIES
Assuming the 90 days trading horizon JAIZ BANK PLC is expected to generate 6.42 times more return on investment than INTERNATIONAL BREWERIES. However, JAIZ BANK is 6.42 times more volatile than INTERNATIONAL BREWERIES PLC. It trades about 0.11 of its potential returns per unit of risk. INTERNATIONAL BREWERIES PLC is currently generating about 0.0 per unit of risk. If you would invest 225.00 in JAIZ BANK PLC on August 31, 2024 and sell it today you would earn a total of 12.00 from holding JAIZ BANK PLC or generate 5.33% 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. INTERNATIONAL BREWERIES PLC
Performance |
| Timeline |
| JAIZ BANK PLC |
| INTERNATIONAL BREWERIES |
JAIZ BANK and INTERNATIONAL BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAIZ BANK and INTERNATIONAL BREWERIES
The main advantage of trading using opposite JAIZ BANK and INTERNATIONAL BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAIZ BANK position performs unexpectedly, INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES will offset losses from the drop in INTERNATIONAL BREWERIES's long position.| JAIZ BANK vs. AFRICAN ALLIANCE INSURANCE | JAIZ BANK vs. VETIVA BANKING ETF | JAIZ BANK vs. FIDELITY BANK PLC | JAIZ BANK vs. STACO INSURANCE PLC |
| INTERNATIONAL BREWERIES vs. JAIZ BANK PLC | INTERNATIONAL BREWERIES vs. GOLDLINK INSURANCE PLC | INTERNATIONAL BREWERIES vs. STACO INSURANCE PLC | INTERNATIONAL BREWERIES vs. STERLING FINANCIAL HOLDINGS |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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