Correlation Between SECURE ELECTRONIC and IKEJA HOTELS
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By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and IKEJA HOTELS PLC, you can compare the effects of market volatilities on SECURE ELECTRONIC and IKEJA HOTELS 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 SECURE ELECTRONIC with a short position of IKEJA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and IKEJA HOTELS.
Diversification Opportunities for SECURE ELECTRONIC and IKEJA HOTELS
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SECURE and IKEJA is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY and IKEJA HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKEJA HOTELS PLC and SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY are associated (or correlated) with IKEJA HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKEJA HOTELS PLC has no effect on the direction of SECURE ELECTRONIC i.e., SECURE ELECTRONIC and IKEJA HOTELS go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and IKEJA HOTELS
Assuming the 90 days trading horizon SECURE ELECTRONIC is expected to generate 1.39 times less return on investment than IKEJA HOTELS. In addition to that, SECURE ELECTRONIC is 1.41 times more volatile than IKEJA HOTELS PLC. It trades about 0.16 of its total potential returns per unit of risk. IKEJA HOTELS PLC is currently generating about 0.32 per unit of volatility. If you would invest 1,005 in IKEJA HOTELS PLC on October 24, 2024 and sell it today you would earn a total of 345.00 from holding IKEJA HOTELS PLC or generate 34.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. IKEJA HOTELS PLC
Performance |
| Timeline |
| SECURE ELECTRONIC |
| IKEJA HOTELS PLC |
SECURE ELECTRONIC and IKEJA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and IKEJA HOTELS
The main advantage of trading using opposite SECURE ELECTRONIC and IKEJA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC position performs unexpectedly, IKEJA HOTELS 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 IKEJA HOTELS will offset losses from the drop in IKEJA HOTELS's long position.| SECURE ELECTRONIC vs. GUINEA INSURANCE PLC | SECURE ELECTRONIC vs. SFS REAL ESTATE | SECURE ELECTRONIC vs. VFD GROUP | SECURE ELECTRONIC vs. IKEJA HOTELS PLC |
| IKEJA HOTELS vs. GUINEA INSURANCE PLC | IKEJA HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | IKEJA HOTELS vs. SFS REAL ESTATE | IKEJA HOTELS vs. VFD GROUP |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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