Correlation Between MULTI TREX and WEMA BANK
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By analyzing existing cross correlation between MULTI TREX INTEGRATED FOODS and WEMA BANK PLC, you can compare the effects of market volatilities on MULTI TREX 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 MULTI TREX with a short position of WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of MULTI TREX and WEMA BANK.
Diversification Opportunities for MULTI TREX and WEMA BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MULTI and WEMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MULTI TREX INTEGRATED FOODS 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 MULTI TREX 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 MULTI TREX INTEGRATED FOODS 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 MULTI TREX i.e., MULTI TREX and WEMA BANK go up and down completely randomly.
Pair Corralation between MULTI TREX and WEMA BANK
If you would invest 496.00 in WEMA BANK PLC on September 2, 2024 and sell it today you would earn a total of 379.00 from holding WEMA BANK PLC or generate 76.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MULTI TREX INTEGRATED FOODS vs. WEMA BANK PLC
Performance |
| Timeline |
| MULTI TREX INTEGRATED |
| WEMA BANK PLC |
MULTI TREX and WEMA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MULTI TREX and WEMA BANK
The main advantage of trading using opposite MULTI TREX and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MULTI TREX 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.| MULTI TREX vs. CHAMPION BREWERIES PLC | MULTI TREX vs. INTERNATIONAL BREWERIES PLC | MULTI TREX vs. STACO INSURANCE PLC | MULTI TREX vs. STERLING FINANCIAL HOLDINGS |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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