Correlation Between JULIUS BERGER and ZENITH BANK
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By analyzing existing cross correlation between JULIUS BERGER NIGERIA and ZENITH BANK PLC, you can compare the effects of market volatilities on JULIUS BERGER and ZENITH BANK 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 JULIUS BERGER with a short position of ZENITH BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of JULIUS BERGER and ZENITH BANK.
Diversification Opportunities for JULIUS BERGER and ZENITH BANK
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JULIUS and ZENITH is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding JULIUS BERGER NIGERIA and ZENITH BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZENITH BANK PLC and JULIUS BERGER 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 JULIUS BERGER NIGERIA are associated (or correlated) with ZENITH BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZENITH BANK PLC has no effect on the direction of JULIUS BERGER i.e., JULIUS BERGER and ZENITH BANK go up and down completely randomly.
Pair Corralation between JULIUS BERGER and ZENITH BANK
Assuming the 90 days trading horizon JULIUS BERGER NIGERIA is expected to under-perform the ZENITH BANK. In addition to that, JULIUS BERGER is 2.38 times more volatile than ZENITH BANK PLC. It trades about -0.22 of its total potential returns per unit of risk. ZENITH BANK PLC is currently generating about 0.33 per unit of volatility. If you would invest 4,310 in ZENITH BANK PLC on September 24, 2024 and sell it today you would earn a total of 275.00 from holding ZENITH BANK PLC or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JULIUS BERGER NIGERIA vs. ZENITH BANK PLC
Performance |
| Timeline |
| JULIUS BERGER NIGERIA |
| ZENITH BANK PLC |
JULIUS BERGER and ZENITH BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JULIUS BERGER and ZENITH BANK
The main advantage of trading using opposite JULIUS BERGER and ZENITH BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JULIUS BERGER position performs unexpectedly, ZENITH BANK 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 ZENITH BANK will offset losses from the drop in ZENITH BANK's long position.| JULIUS BERGER vs. ZENITH BANK PLC | JULIUS BERGER vs. GUINEA INSURANCE PLC | JULIUS BERGER vs. SECURE ELECTRONIC TECHNOLOGY | JULIUS BERGER vs. SFS REAL ESTATE |
| ZENITH BANK vs. GUINEA INSURANCE PLC | ZENITH BANK vs. SECURE ELECTRONIC TECHNOLOGY | ZENITH BANK vs. SFS REAL ESTATE | ZENITH BANK vs. CHELLARAMS 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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