Correlation Between LIVINGTRUST MORTGAGE and WEMA BANK
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By analyzing existing cross correlation between LIVINGTRUST MORTGAGE BANK and WEMA BANK PLC, you can compare the effects of market volatilities on LIVINGTRUST MORTGAGE and WEMA 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 LIVINGTRUST MORTGAGE with a short position of WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIVINGTRUST MORTGAGE and WEMA BANK.
Diversification Opportunities for LIVINGTRUST MORTGAGE and WEMA BANK
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LIVINGTRUST and WEMA is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding LIVINGTRUST MORTGAGE BANK and WEMA BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEMA BANK PLC and LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE BANK are associated (or correlated) with WEMA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEMA BANK PLC has no effect on the direction of LIVINGTRUST MORTGAGE i.e., LIVINGTRUST MORTGAGE and WEMA BANK go up and down completely randomly.
Pair Corralation between LIVINGTRUST MORTGAGE and WEMA BANK
Assuming the 90 days trading horizon LIVINGTRUST MORTGAGE BANK is expected to generate 58.31 times more return on investment than WEMA BANK. However, LIVINGTRUST MORTGAGE is 58.31 times more volatile than WEMA BANK PLC. It trades about 0.25 of its potential returns per unit of risk. WEMA BANK PLC is currently generating about 0.08 per unit of risk. If you would invest 158.00 in LIVINGTRUST MORTGAGE BANK on September 19, 2024 and sell it today you would earn a total of 172.00 from holding LIVINGTRUST MORTGAGE BANK or generate 108.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.05% |
| Values | Daily Returns |
LIVINGTRUST MORTGAGE BANK vs. WEMA BANK PLC
Performance |
| Timeline |
| LIVINGTRUST MORTGAGE BANK |
| WEMA BANK PLC |
LIVINGTRUST MORTGAGE and WEMA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIVINGTRUST MORTGAGE and WEMA BANK
The main advantage of trading using opposite LIVINGTRUST MORTGAGE and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIVINGTRUST MORTGAGE position performs unexpectedly, WEMA 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 WEMA BANK will offset losses from the drop in WEMA BANK's long position.| LIVINGTRUST MORTGAGE vs. GUINEA INSURANCE PLC | LIVINGTRUST MORTGAGE vs. SECURE ELECTRONIC TECHNOLOGY | LIVINGTRUST MORTGAGE vs. VFD GROUP | LIVINGTRUST MORTGAGE vs. IKEJA HOTELS PLC |
| WEMA BANK vs. NEM INSURANCE PLC | WEMA BANK vs. LIVINGTRUST MORTGAGE BANK | WEMA BANK vs. ZENITH BANK PLC | WEMA BANK vs. TRANSCORP HOTELS 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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