Correlation Between SFS REAL and IKEJA HOTELS
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By analyzing existing cross correlation between SFS REAL ESTATE and IKEJA HOTELS PLC, you can compare the effects of market volatilities on SFS REAL 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 SFS REAL with a short position of IKEJA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFS REAL and IKEJA HOTELS.
Diversification Opportunities for SFS REAL and IKEJA HOTELS
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SFS and IKEJA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SFS REAL ESTATE 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 SFS REAL 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 SFS REAL ESTATE 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 SFS REAL i.e., SFS REAL and IKEJA HOTELS go up and down completely randomly.
Pair Corralation between SFS REAL and IKEJA HOTELS
Assuming the 90 days trading horizon SFS REAL ESTATE is expected to generate 0.15 times more return on investment than IKEJA HOTELS. However, SFS REAL ESTATE is 6.49 times less risky than IKEJA HOTELS. It trades about 0.22 of its potential returns per unit of risk. IKEJA HOTELS PLC is currently generating about -0.08 per unit of risk. If you would invest 19,735 in SFS REAL ESTATE on December 11, 2024 and sell it today you would earn a total of 865.00 from holding SFS REAL ESTATE or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SFS REAL ESTATE vs. IKEJA HOTELS PLC
Performance |
| Timeline |
| SFS REAL ESTATE |
| IKEJA HOTELS PLC |
SFS REAL and IKEJA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFS REAL and IKEJA HOTELS
The main advantage of trading using opposite SFS REAL and IKEJA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFS REAL 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.| SFS REAL vs. UNITED BANK FOR | SFS REAL vs. LIVINGTRUST MORTGAGE BANK | SFS REAL vs. MULTI TREX INTEGRATED FOODS | SFS REAL vs. BUA FOODS PLC |
| IKEJA HOTELS vs. NEM INSURANCE PLC | IKEJA HOTELS vs. VETIVA INDUSTRIAL ETF | IKEJA HOTELS vs. INDUSTRIAL MEDICAL GASES | IKEJA HOTELS vs. INTERNATIONAL BREWERIES PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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