Correlation Between STERLING FINANCIAL and JAIZ BANK
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By analyzing existing cross correlation between STERLING FINANCIAL HOLDINGS and JAIZ BANK PLC, you can compare the effects of market volatilities on STERLING FINANCIAL 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 STERLING FINANCIAL with a short position of JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of STERLING FINANCIAL and JAIZ BANK.
Diversification Opportunities for STERLING FINANCIAL and JAIZ BANK
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between STERLING and JAIZ is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding STERLING FINANCIAL HOLDINGS 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 STERLING FINANCIAL 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 STERLING FINANCIAL HOLDINGS 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 STERLING FINANCIAL i.e., STERLING FINANCIAL and JAIZ BANK go up and down completely randomly.
Pair Corralation between STERLING FINANCIAL and JAIZ BANK
Assuming the 90 days trading horizon STERLING FINANCIAL HOLDINGS is expected to under-perform the JAIZ BANK. In addition to that, STERLING FINANCIAL is 1.14 times more volatile than JAIZ BANK PLC. It trades about -0.07 of its total potential returns per unit of risk. JAIZ BANK PLC is currently generating about 0.01 per unit of volatility. If you would invest 235.00 in JAIZ BANK PLC on September 4, 2024 and sell it today you would earn a total of 0.00 from holding JAIZ BANK PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STERLING FINANCIAL HOLDINGS vs. JAIZ BANK PLC
Performance |
| Timeline |
| STERLING FINANCIAL |
| JAIZ BANK PLC |
STERLING FINANCIAL and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STERLING FINANCIAL and JAIZ BANK
The main advantage of trading using opposite STERLING FINANCIAL and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STERLING FINANCIAL 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.| STERLING FINANCIAL vs. GUINEA INSURANCE PLC | STERLING FINANCIAL vs. SECURE ELECTRONIC TECHNOLOGY | STERLING FINANCIAL vs. VFD GROUP | STERLING FINANCIAL vs. VETIVA S P |
| JAIZ BANK vs. CONSOLIDATED HALLMARK INSURANCE | JAIZ BANK vs. STACO INSURANCE PLC | JAIZ BANK vs. STERLING FINANCIAL HOLDINGS | JAIZ BANK vs. SOVEREIGN TRUST INSURANCE |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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