Correlation Between REPUBLIC BANK and ACCESS BANK
Specify exactly 2 symbols:
By analyzing existing cross correlation between REPUBLIC BANK LIMITED and ACCESS BANK GHANA, you can compare the effects of market volatilities on REPUBLIC BANK and ACCESS 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 REPUBLIC BANK with a short position of ACCESS BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of REPUBLIC BANK and ACCESS BANK.
Diversification Opportunities for REPUBLIC BANK and ACCESS BANK
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between REPUBLIC and ACCESS is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding REPUBLIC BANK LIMITED and ACCESS BANK GHANA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCESS BANK GHANA and REPUBLIC BANK 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 REPUBLIC BANK LIMITED are associated (or correlated) with ACCESS BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCESS BANK GHANA has no effect on the direction of REPUBLIC BANK i.e., REPUBLIC BANK and ACCESS BANK go up and down completely randomly.
Pair Corralation between REPUBLIC BANK and ACCESS BANK
Assuming the 90 days trading horizon REPUBLIC BANK LIMITED is expected to generate 1.18 times more return on investment than ACCESS BANK. However, REPUBLIC BANK is 1.18 times more volatile than ACCESS BANK GHANA. It trades about 0.18 of its potential returns per unit of risk. ACCESS BANK GHANA is currently generating about 0.0 per unit of risk. If you would invest 48.00 in REPUBLIC BANK LIMITED on September 2, 2024 and sell it today you would earn a total of 18.00 from holding REPUBLIC BANK LIMITED or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REPUBLIC BANK LIMITED vs. ACCESS BANK GHANA
Performance |
| Timeline |
| REPUBLIC BANK LIMITED |
| ACCESS BANK GHANA |
REPUBLIC BANK and ACCESS BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REPUBLIC BANK and ACCESS BANK
The main advantage of trading using opposite REPUBLIC BANK and ACCESS BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REPUBLIC BANK position performs unexpectedly, ACCESS 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 ACCESS BANK will offset losses from the drop in ACCESS BANK's long position.The idea behind REPUBLIC BANK LIMITED and ACCESS BANK GHANA 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |