Correlation Between SOVEREIGN TRUST and FIDELITY BANK
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By analyzing existing cross correlation between SOVEREIGN TRUST INSURANCE and FIDELITY BANK PLC, you can compare the effects of market volatilities on SOVEREIGN TRUST and FIDELITY 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 SOVEREIGN TRUST with a short position of FIDELITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOVEREIGN TRUST and FIDELITY BANK.
Diversification Opportunities for SOVEREIGN TRUST and FIDELITY BANK
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOVEREIGN and FIDELITY is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SOVEREIGN TRUST INSURANCE and FIDELITY BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDELITY BANK PLC and SOVEREIGN TRUST 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 SOVEREIGN TRUST INSURANCE are associated (or correlated) with FIDELITY BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDELITY BANK PLC has no effect on the direction of SOVEREIGN TRUST i.e., SOVEREIGN TRUST and FIDELITY BANK go up and down completely randomly.
Pair Corralation between SOVEREIGN TRUST and FIDELITY BANK
Assuming the 90 days trading horizon SOVEREIGN TRUST is expected to generate 1.27 times less return on investment than FIDELITY BANK. In addition to that, SOVEREIGN TRUST is 1.34 times more volatile than FIDELITY BANK PLC. It trades about 0.05 of its total potential returns per unit of risk. FIDELITY BANK PLC is currently generating about 0.09 per unit of volatility. If you would invest 579.00 in FIDELITY BANK PLC on August 31, 2024 and sell it today you would earn a total of 951.00 from holding FIDELITY BANK PLC or generate 164.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOVEREIGN TRUST INSURANCE vs. FIDELITY BANK PLC
Performance |
| Timeline |
| SOVEREIGN TRUST INSURANCE |
| FIDELITY BANK PLC |
SOVEREIGN TRUST and FIDELITY BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOVEREIGN TRUST and FIDELITY BANK
The main advantage of trading using opposite SOVEREIGN TRUST and FIDELITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOVEREIGN TRUST position performs unexpectedly, FIDELITY 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 FIDELITY BANK will offset losses from the drop in FIDELITY BANK's long position.| SOVEREIGN TRUST vs. SECURE ELECTRONIC TECHNOLOGY | SOVEREIGN TRUST vs. VFD GROUP | SOVEREIGN TRUST vs. AFROMEDIA PLC | SOVEREIGN TRUST vs. DEAP CAPITAL MANAGEMENT |
| FIDELITY BANK vs. SECURE ELECTRONIC TECHNOLOGY | FIDELITY BANK vs. VFD GROUP | FIDELITY BANK vs. AFROMEDIA PLC | FIDELITY BANK vs. DEAP CAPITAL MANAGEMENT |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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