Correlation Between JAIZ BANK and SECURE ELECTRONIC
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By analyzing existing cross correlation between JAIZ BANK PLC and SECURE ELECTRONIC TECHNOLOGY, you can compare the effects of market volatilities on JAIZ BANK and SECURE ELECTRONIC 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 SECURE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAIZ BANK and SECURE ELECTRONIC.
Diversification Opportunities for JAIZ BANK and SECURE ELECTRONIC
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between JAIZ and SECURE is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding JAIZ BANK PLC and SECURE ELECTRONIC TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURE ELECTRONIC 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 SECURE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURE ELECTRONIC has no effect on the direction of JAIZ BANK i.e., JAIZ BANK and SECURE ELECTRONIC go up and down completely randomly.
Pair Corralation between JAIZ BANK and SECURE ELECTRONIC
Assuming the 90 days trading horizon JAIZ BANK is expected to generate 1.22 times less return on investment than SECURE ELECTRONIC. But when comparing it to its historical volatility, JAIZ BANK PLC is 1.63 times less risky than SECURE ELECTRONIC. It trades about 0.06 of its potential returns per unit of risk. SECURE ELECTRONIC TECHNOLOGY is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 50.00 in SECURE ELECTRONIC TECHNOLOGY on September 19, 2024 and sell it today you would earn a total of 5.00 from holding SECURE ELECTRONIC TECHNOLOGY or generate 10.0% 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. SECURE ELECTRONIC TECHNOLOGY
Performance |
| Timeline |
| JAIZ BANK PLC |
| SECURE ELECTRONIC |
JAIZ BANK and SECURE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAIZ BANK and SECURE ELECTRONIC
The main advantage of trading using opposite JAIZ BANK and SECURE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAIZ BANK position performs unexpectedly, SECURE ELECTRONIC 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 SECURE ELECTRONIC will offset losses from the drop in SECURE ELECTRONIC'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 |
| SECURE ELECTRONIC vs. GUINEA INSURANCE PLC | SECURE ELECTRONIC vs. VFD GROUP | SECURE ELECTRONIC vs. IKEJA HOTELS PLC | SECURE ELECTRONIC 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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