Correlation Between UNITED BANK and CUSTODIAN INVESTMENT
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By analyzing existing cross correlation between UNITED BANK FOR and CUSTODIAN INVESTMENT PLC, you can compare the effects of market volatilities on UNITED BANK and CUSTODIAN INVESTMENT 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 UNITED BANK with a short position of CUSTODIAN INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITED BANK and CUSTODIAN INVESTMENT.
Diversification Opportunities for UNITED BANK and CUSTODIAN INVESTMENT
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNITED and CUSTODIAN is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding UNITED BANK FOR and CUSTODIAN INVESTMENT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUSTODIAN INVESTMENT PLC and UNITED 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 UNITED BANK FOR are associated (or correlated) with CUSTODIAN INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUSTODIAN INVESTMENT PLC has no effect on the direction of UNITED BANK i.e., UNITED BANK and CUSTODIAN INVESTMENT go up and down completely randomly.
Pair Corralation between UNITED BANK and CUSTODIAN INVESTMENT
Assuming the 90 days trading horizon UNITED BANK FOR is expected to generate 1.08 times more return on investment than CUSTODIAN INVESTMENT. However, UNITED BANK is 1.08 times more volatile than CUSTODIAN INVESTMENT PLC. It trades about 0.09 of its potential returns per unit of risk. CUSTODIAN INVESTMENT PLC is currently generating about 0.09 per unit of risk. If you would invest 1,345 in UNITED BANK FOR on October 24, 2024 and sell it today you would earn a total of 2,055 from holding UNITED BANK FOR or generate 152.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNITED BANK FOR vs. CUSTODIAN INVESTMENT PLC
Performance |
| Timeline |
| UNITED BANK FOR |
| CUSTODIAN INVESTMENT PLC |
UNITED BANK and CUSTODIAN INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITED BANK and CUSTODIAN INVESTMENT
The main advantage of trading using opposite UNITED BANK and CUSTODIAN INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED BANK position performs unexpectedly, CUSTODIAN INVESTMENT 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 CUSTODIAN INVESTMENT will offset losses from the drop in CUSTODIAN INVESTMENT's long position.| UNITED BANK vs. CUSTODIAN INVESTMENT PLC | UNITED BANK vs. AFRICAN ALLIANCE INSURANCE | UNITED BANK vs. CHAMPION BREWERIES PLC | UNITED BANK vs. ZENITH BANK PLC |
| CUSTODIAN INVESTMENT vs. GOLDLINK INSURANCE PLC | CUSTODIAN INVESTMENT vs. MULTI TREX INTEGRATED FOODS | CUSTODIAN INVESTMENT vs. DEAP CAPITAL MANAGEMENT | CUSTODIAN INVESTMENT vs. CORNERSTONE INSURANCE 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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