Correlation Between JAIZ BANK and INTERNATIONAL ENERGY
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By analyzing existing cross correlation between JAIZ BANK PLC and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on JAIZ BANK and INTERNATIONAL ENERGY 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 ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAIZ BANK and INTERNATIONAL ENERGY.
Diversification Opportunities for JAIZ BANK and INTERNATIONAL ENERGY
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JAIZ and INTERNATIONAL is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding JAIZ BANK PLC and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY 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 ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of JAIZ BANK i.e., JAIZ BANK and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between JAIZ BANK and INTERNATIONAL ENERGY
Assuming the 90 days trading horizon JAIZ BANK is expected to generate 1.41 times less return on investment than INTERNATIONAL ENERGY. But when comparing it to its historical volatility, JAIZ BANK PLC is 1.88 times less risky than INTERNATIONAL ENERGY. It trades about 0.26 of its potential returns per unit of risk. INTERNATIONAL ENERGY INSURANCE is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 141.00 in INTERNATIONAL ENERGY INSURANCE on October 26, 2024 and sell it today you would earn a total of 54.00 from holding INTERNATIONAL ENERGY INSURANCE or generate 38.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAIZ BANK PLC vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| JAIZ BANK PLC |
| INTERNATIONAL ENERGY |
JAIZ BANK and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAIZ BANK and INTERNATIONAL ENERGY
The main advantage of trading using opposite JAIZ BANK and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAIZ BANK position performs unexpectedly, INTERNATIONAL ENERGY 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 ENERGY will offset losses from the drop in INTERNATIONAL ENERGY'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 |
| INTERNATIONAL ENERGY vs. CUSTODIAN INVESTMENT PLC | INTERNATIONAL ENERGY vs. AIICO INSURANCE PLC | INTERNATIONAL ENERGY vs. ABC TRANSPORT PLC | INTERNATIONAL ENERGY vs. VETIVA SUMER GOODS |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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