Correlation Between NIGERIAN EXCHANGE and UNITED BANK
Specify exactly 2 symbols:
By analyzing existing cross correlation between NIGERIAN EXCHANGE GROUP and UNITED BANK FOR, you can compare the effects of market volatilities on NIGERIAN EXCHANGE and UNITED 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 NIGERIAN EXCHANGE with a short position of UNITED BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIGERIAN EXCHANGE and UNITED BANK.
Diversification Opportunities for NIGERIAN EXCHANGE and UNITED BANK
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NIGERIAN and UNITED is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding NIGERIAN EXCHANGE GROUP and UNITED BANK FOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED BANK FOR and NIGERIAN EXCHANGE 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 NIGERIAN EXCHANGE GROUP are associated (or correlated) with UNITED BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED BANK FOR has no effect on the direction of NIGERIAN EXCHANGE i.e., NIGERIAN EXCHANGE and UNITED BANK go up and down completely randomly.
Pair Corralation between NIGERIAN EXCHANGE and UNITED BANK
Assuming the 90 days trading horizon NIGERIAN EXCHANGE is expected to generate 1.96 times less return on investment than UNITED BANK. But when comparing it to its historical volatility, NIGERIAN EXCHANGE GROUP is 1.18 times less risky than UNITED BANK. It trades about 0.04 of its potential returns per unit of risk. UNITED BANK FOR is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,190 in UNITED BANK FOR on September 2, 2024 and sell it today you would earn a total of 1,080 from holding UNITED BANK FOR or generate 49.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIGERIAN EXCHANGE GROUP vs. UNITED BANK FOR
Performance |
| Timeline |
| NIGERIAN EXCHANGE |
| UNITED BANK FOR |
NIGERIAN EXCHANGE and UNITED BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIGERIAN EXCHANGE and UNITED BANK
The main advantage of trading using opposite NIGERIAN EXCHANGE and UNITED BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIGERIAN EXCHANGE position performs unexpectedly, UNITED 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 UNITED BANK will offset losses from the drop in UNITED BANK's long position.| NIGERIAN EXCHANGE vs. UNITED BANK FOR | NIGERIAN EXCHANGE vs. AXAMANSARD INSURANCE PLC | NIGERIAN EXCHANGE vs. NEM INSURANCE PLC | NIGERIAN EXCHANGE vs. MULTI TREX INTEGRATED FOODS |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |