Correlation Between MEYER PLC and JAIZ BANK
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By analyzing existing cross correlation between MEYER PLC and JAIZ BANK PLC, you can compare the effects of market volatilities on MEYER PLC and JAIZ 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 MEYER PLC with a short position of JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEYER PLC and JAIZ BANK.
Diversification Opportunities for MEYER PLC and JAIZ BANK
Very weak diversification
The 3 months correlation between MEYER and JAIZ is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding MEYER PLC and JAIZ BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAIZ BANK PLC and MEYER PLC 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 MEYER PLC are associated (or correlated) with JAIZ BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAIZ BANK PLC has no effect on the direction of MEYER PLC i.e., MEYER PLC and JAIZ BANK go up and down completely randomly.
Pair Corralation between MEYER PLC and JAIZ BANK
Assuming the 90 days trading horizon MEYER PLC is expected to under-perform the JAIZ BANK. But the stock apears to be less risky and, when comparing its historical volatility, MEYER PLC is 1.55 times less risky than JAIZ BANK. The stock trades about -0.22 of its potential returns per unit of risk. The JAIZ BANK PLC is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 259.00 in JAIZ BANK PLC on August 28, 2024 and sell it today you would lose (25.00) from holding JAIZ BANK PLC or give up 9.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEYER PLC vs. JAIZ BANK PLC
Performance |
| Timeline |
| MEYER PLC |
| JAIZ BANK PLC |
MEYER PLC and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEYER PLC and JAIZ BANK
The main advantage of trading using opposite MEYER PLC and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEYER PLC position performs unexpectedly, JAIZ 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 JAIZ BANK will offset losses from the drop in JAIZ BANK's long position.The idea behind MEYER PLC and JAIZ BANK PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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