Correlation Between THOMAS WYATT and JAIZ BANK
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By analyzing existing cross correlation between THOMAS WYATT NIGERIA and JAIZ BANK PLC, you can compare the effects of market volatilities on THOMAS WYATT 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 THOMAS WYATT with a short position of JAIZ BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of THOMAS WYATT and JAIZ BANK.
Diversification Opportunities for THOMAS WYATT and JAIZ BANK
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THOMAS and JAIZ is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding THOMAS WYATT NIGERIA 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 THOMAS WYATT 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 THOMAS WYATT NIGERIA 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 THOMAS WYATT i.e., THOMAS WYATT and JAIZ BANK go up and down completely randomly.
Pair Corralation between THOMAS WYATT and JAIZ BANK
Assuming the 90 days trading horizon THOMAS WYATT NIGERIA is expected to generate 1.98 times more return on investment than JAIZ BANK. However, THOMAS WYATT is 1.98 times more volatile than JAIZ BANK PLC. It trades about 0.11 of its potential returns per unit of risk. JAIZ BANK PLC is currently generating about 0.16 per unit of risk. If you would invest 190.00 in THOMAS WYATT NIGERIA on November 5, 2024 and sell it today you would earn a total of 14.00 from holding THOMAS WYATT NIGERIA or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
THOMAS WYATT NIGERIA vs. JAIZ BANK PLC
Performance |
| Timeline |
| THOMAS WYATT NIGERIA |
| JAIZ BANK PLC |
THOMAS WYATT and JAIZ BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THOMAS WYATT and JAIZ BANK
The main advantage of trading using opposite THOMAS WYATT and JAIZ BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THOMAS WYATT 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.| THOMAS WYATT vs. MULTI TREX INTEGRATED FOODS | THOMAS WYATT vs. STANDARD ALLIANCE INSURANCE | THOMAS WYATT vs. CORNERSTONE INSURANCE PLC | THOMAS WYATT vs. DEAP CAPITAL MANAGEMENT |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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