Correlation Between STANBIC IBTC and VFD GROUP
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By analyzing existing cross correlation between STANBIC IBTC ETF and VFD GROUP, you can compare the effects of market volatilities on STANBIC IBTC and VFD GROUP 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 STANBIC IBTC with a short position of VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANBIC IBTC and VFD GROUP.
Diversification Opportunities for STANBIC IBTC and VFD GROUP
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between STANBIC and VFD is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding STANBIC IBTC ETF and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP and STANBIC IBTC 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 STANBIC IBTC ETF are associated (or correlated) with VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of STANBIC IBTC i.e., STANBIC IBTC and VFD GROUP go up and down completely randomly.
Pair Corralation between STANBIC IBTC and VFD GROUP
Assuming the 90 days trading horizon STANBIC IBTC ETF is expected to under-perform the VFD GROUP. In addition to that, STANBIC IBTC is 1.17 times more volatile than VFD GROUP. It trades about -0.09 of its total potential returns per unit of risk. VFD GROUP is currently generating about 0.2 per unit of volatility. If you would invest 4,440 in VFD GROUP on December 6, 2024 and sell it today you would earn a total of 800.00 from holding VFD GROUP or generate 18.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
STANBIC IBTC ETF vs. VFD GROUP
Performance |
| Timeline |
| STANBIC IBTC ETF |
| VFD GROUP |
STANBIC IBTC and VFD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANBIC IBTC and VFD GROUP
The main advantage of trading using opposite STANBIC IBTC and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANBIC IBTC position performs unexpectedly, VFD GROUP 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 VFD GROUP will offset losses from the drop in VFD GROUP's long position.| STANBIC IBTC vs. VETIVA GRIFFIN 30 | ||
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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