Correlation Between TOTALENERGIES MARKETING and WEMA BANK
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By analyzing existing cross correlation between TOTALENERGIES MARKETING NIGERIA and WEMA BANK PLC, you can compare the effects of market volatilities on TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING with a short position of WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTALENERGIES MARKETING and WEMA BANK.
Diversification Opportunities for TOTALENERGIES MARKETING and WEMA BANK
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TOTALENERGIES and WEMA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding TOTALENERGIES MARKETING NIGERI 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 TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING NIGERIA 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 TOTALENERGIES MARKETING i.e., TOTALENERGIES MARKETING and WEMA BANK go up and down completely randomly.
Pair Corralation between TOTALENERGIES MARKETING and WEMA BANK
Assuming the 90 days trading horizon TOTALENERGIES MARKETING NIGERIA is expected to generate 0.51 times more return on investment than WEMA BANK. However, TOTALENERGIES MARKETING NIGERIA is 1.98 times less risky than WEMA BANK. It trades about 0.18 of its potential returns per unit of risk. WEMA BANK PLC is currently generating about 0.08 per unit of risk. If you would invest 16,189 in TOTALENERGIES MARKETING NIGERIA on August 31, 2024 and sell it today you would earn a total of 51,201 from holding TOTALENERGIES MARKETING NIGERIA or generate 316.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
TOTALENERGIES MARKETING NIGERI vs. WEMA BANK PLC
Performance |
| Timeline |
| TOTALENERGIES MARKETING |
| WEMA BANK PLC |
TOTALENERGIES MARKETING and WEMA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOTALENERGIES MARKETING and WEMA BANK
The main advantage of trading using opposite TOTALENERGIES MARKETING and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTALENERGIES MARKETING 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.| TOTALENERGIES MARKETING vs. SECURE ELECTRONIC TECHNOLOGY | TOTALENERGIES MARKETING vs. VFD GROUP | TOTALENERGIES MARKETING vs. AFROMEDIA PLC | TOTALENERGIES MARKETING vs. DEAP CAPITAL MANAGEMENT |
| WEMA BANK vs. SECURE ELECTRONIC TECHNOLOGY | WEMA BANK vs. VFD GROUP | WEMA BANK vs. AFROMEDIA PLC | WEMA BANK vs. DEAP CAPITAL MANAGEMENT |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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