Correlation Between STACO INSURANCE and JAIZ BANK
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By analyzing existing cross correlation between STACO INSURANCE PLC and JAIZ BANK PLC, you can compare the effects of market volatilities on STACO INSURANCE and JAIZ 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 STACO INSURANCE with a short position of JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of STACO INSURANCE and JAIZ BANK.
Diversification Opportunities for STACO INSURANCE and JAIZ BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STACO and JAIZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STACO INSURANCE PLC and JAIZ BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAIZ BANK PLC and STACO INSURANCE 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 STACO INSURANCE PLC are associated (or correlated) with JAIZ BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAIZ BANK PLC has no effect on the direction of STACO INSURANCE i.e., STACO INSURANCE and JAIZ BANK go up and down completely randomly.
Pair Corralation between STACO INSURANCE and JAIZ BANK
If you would invest 151.00 in JAIZ BANK PLC on September 2, 2024 and sell it today you would earn a total of 89.00 from holding JAIZ BANK PLC or generate 58.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STACO INSURANCE PLC vs. JAIZ BANK PLC
Performance |
| Timeline |
| STACO INSURANCE PLC |
| JAIZ BANK PLC |
STACO INSURANCE and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STACO INSURANCE and JAIZ BANK
The main advantage of trading using opposite STACO INSURANCE and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STACO INSURANCE position performs unexpectedly, JAIZ 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 JAIZ BANK will offset losses from the drop in JAIZ BANK's long position.The idea behind STACO INSURANCE PLC and JAIZ BANK PLC 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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