Correlation Between UNITED BANK and VFD GROUP
Specify exactly 2 symbols:
By analyzing existing cross correlation between UNITED BANK FOR and VFD GROUP, you can compare the effects of market volatilities on UNITED BANK and VFD GROUP 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 VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITED BANK and VFD GROUP.
Diversification Opportunities for UNITED BANK and VFD GROUP
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNITED and VFD is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding UNITED BANK FOR and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP 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 VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of UNITED BANK i.e., UNITED BANK and VFD GROUP go up and down completely randomly.
Pair Corralation between UNITED BANK and VFD GROUP
Assuming the 90 days trading horizon UNITED BANK FOR is expected to generate 2.69 times more return on investment than VFD GROUP. However, UNITED BANK is 2.69 times more volatile than VFD GROUP. It trades about 0.16 of its potential returns per unit of risk. VFD GROUP is currently generating about -0.13 per unit of risk. If you would invest 2,430 in UNITED BANK FOR on September 3, 2024 and sell it today you would earn a total of 840.00 from holding UNITED BANK FOR or generate 34.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNITED BANK FOR vs. VFD GROUP
Performance |
| Timeline |
| UNITED BANK FOR |
| VFD GROUP |
UNITED BANK and VFD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITED BANK and VFD GROUP
The main advantage of trading using opposite UNITED BANK and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED BANK position performs unexpectedly, VFD GROUP 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 VFD GROUP will offset losses from the drop in VFD GROUP's long position.| UNITED BANK vs. NIGERIAN BREWERIES PLC | UNITED BANK vs. TRANSCORP HOTELS PLC | UNITED BANK vs. AXAMANSARD INSURANCE PLC | UNITED BANK vs. IKEJA HOTELS PLC |
| VFD GROUP vs. CONSOLIDATED HALLMARK INSURANCE | VFD GROUP vs. STERLING FINANCIAL HOLDINGS | VFD GROUP vs. TOTALENERGIES MARKETING NIGERIA | VFD GROUP vs. UNITED BANK FOR |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |