Correlation Between STANDARD ALLIANCE and WEMA BANK
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By analyzing existing cross correlation between STANDARD ALLIANCE INSURANCE and WEMA BANK PLC, you can compare the effects of market volatilities on STANDARD ALLIANCE and WEMA 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 STANDARD ALLIANCE with a short position of WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANDARD ALLIANCE and WEMA BANK.
Diversification Opportunities for STANDARD ALLIANCE and WEMA BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STANDARD and WEMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD ALLIANCE INSURANCE and WEMA BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEMA BANK PLC and STANDARD ALLIANCE 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 ALLIANCE INSURANCE are associated (or correlated) with WEMA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEMA BANK PLC has no effect on the direction of STANDARD ALLIANCE i.e., STANDARD ALLIANCE and WEMA BANK go up and down completely randomly.
Pair Corralation between STANDARD ALLIANCE and WEMA BANK
If you would invest 348.00 in WEMA BANK PLC on November 5, 2024 and sell it today you would earn a total of 797.00 from holding WEMA BANK PLC or generate 229.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
STANDARD ALLIANCE INSURANCE vs. WEMA BANK PLC
Performance |
| Timeline |
| STANDARD ALLIANCE |
| WEMA BANK PLC |
STANDARD ALLIANCE and WEMA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANDARD ALLIANCE and WEMA BANK
The main advantage of trading using opposite STANDARD ALLIANCE and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD ALLIANCE position performs unexpectedly, WEMA 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 WEMA BANK will offset losses from the drop in WEMA BANK's long position.| STANDARD ALLIANCE vs. STACO INSURANCE PLC | STANDARD ALLIANCE vs. UNION HOMES SAVINGS | STANDARD ALLIANCE vs. WEMA BANK PLC | STANDARD ALLIANCE vs. NEM INSURANCE PLC |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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