Correlation Between AXAMANSARD INSURANCE and FIDELITY BANK
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By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and FIDELITY BANK PLC, you can compare the effects of market volatilities on AXAMANSARD INSURANCE and FIDELITY 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 AXAMANSARD INSURANCE with a short position of FIDELITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and FIDELITY BANK.
Diversification Opportunities for AXAMANSARD INSURANCE and FIDELITY BANK
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AXAMANSARD and FIDELITY is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and FIDELITY BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDELITY BANK PLC and AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE PLC are associated (or correlated) with FIDELITY BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDELITY BANK PLC has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and FIDELITY BANK go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and FIDELITY BANK
Assuming the 90 days trading horizon AXAMANSARD INSURANCE PLC is expected to generate 0.93 times more return on investment than FIDELITY BANK. However, AXAMANSARD INSURANCE PLC is 1.08 times less risky than FIDELITY BANK. It trades about 0.11 of its potential returns per unit of risk. FIDELITY BANK PLC is currently generating about 0.09 per unit of risk. If you would invest 200.00 in AXAMANSARD INSURANCE PLC on November 5, 2024 and sell it today you would earn a total of 722.00 from holding AXAMANSARD INSURANCE PLC or generate 361.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXAMANSARD INSURANCE PLC vs. FIDELITY BANK PLC
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| FIDELITY BANK PLC |
AXAMANSARD INSURANCE and FIDELITY BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and FIDELITY BANK
The main advantage of trading using opposite AXAMANSARD INSURANCE and FIDELITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE position performs unexpectedly, FIDELITY 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 FIDELITY BANK will offset losses from the drop in FIDELITY BANK's long position.| AXAMANSARD INSURANCE vs. TOTALENERGIES MARKETING NIGERIA | AXAMANSARD INSURANCE vs. CUSTODIAN INVESTMENT PLC | AXAMANSARD INSURANCE vs. TRANSCORP HOTELS PLC | AXAMANSARD INSURANCE vs. ABC TRANSPORT PLC |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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