Correlation Between STANDARD BANK and NICO HOLDINGS
Specify exactly 2 symbols:
By analyzing existing cross correlation between STANDARD BANK LIMITED and NICO HOLDINGS LIMITED, you can compare the effects of market volatilities on STANDARD BANK and NICO HOLDINGS 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 STANDARD BANK with a short position of NICO HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANDARD BANK and NICO HOLDINGS.
Diversification Opportunities for STANDARD BANK and NICO HOLDINGS
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between STANDARD and NICO is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD BANK LIMITED and NICO HOLDINGS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NICO HOLDINGS LIMITED and STANDARD 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 STANDARD BANK LIMITED are associated (or correlated) with NICO HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NICO HOLDINGS LIMITED has no effect on the direction of STANDARD BANK i.e., STANDARD BANK and NICO HOLDINGS go up and down completely randomly.
Pair Corralation between STANDARD BANK and NICO HOLDINGS
Assuming the 90 days trading horizon STANDARD BANK is expected to generate 1.53 times less return on investment than NICO HOLDINGS. But when comparing it to its historical volatility, STANDARD BANK LIMITED is 1.46 times less risky than NICO HOLDINGS. It trades about 0.17 of its potential returns per unit of risk. NICO HOLDINGS LIMITED is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 7,500 in NICO HOLDINGS LIMITED on November 2, 2024 and sell it today you would earn a total of 34,402 from holding NICO HOLDINGS LIMITED or generate 458.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
STANDARD BANK LIMITED vs. NICO HOLDINGS LIMITED
Performance |
| Timeline |
| STANDARD BANK LIMITED |
| NICO HOLDINGS LIMITED |
STANDARD BANK and NICO HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANDARD BANK and NICO HOLDINGS
The main advantage of trading using opposite STANDARD BANK and NICO HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD BANK position performs unexpectedly, NICO HOLDINGS 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 NICO HOLDINGS will offset losses from the drop in NICO HOLDINGS's long position.The idea behind STANDARD BANK LIMITED and NICO HOLDINGS LIMITED 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.| NICO HOLDINGS vs. MALAWI PROPERTY INVESTMENT | NICO HOLDINGS vs. STANDARD BANK LIMITED | NICO HOLDINGS vs. NATIONAL INVESTMENT TRUST | NICO HOLDINGS vs. FDH BANK 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |