Correlation Between UNITY BANK and ZENITH BANK
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By analyzing existing cross correlation between UNITY BANK PLC and ZENITH BANK PLC, you can compare the effects of market volatilities on UNITY BANK and ZENITH 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 UNITY BANK with a short position of ZENITH BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITY BANK and ZENITH BANK.
Diversification Opportunities for UNITY BANK and ZENITH BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNITY and ZENITH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UNITY BANK PLC and ZENITH BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZENITH BANK PLC and UNITY 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 UNITY BANK PLC are associated (or correlated) with ZENITH BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZENITH BANK PLC has no effect on the direction of UNITY BANK i.e., UNITY BANK and ZENITH BANK go up and down completely randomly.
Pair Corralation between UNITY BANK and ZENITH BANK
Assuming the 90 days trading horizon UNITY BANK PLC is expected to generate 1.81 times more return on investment than ZENITH BANK. However, UNITY BANK is 1.81 times more volatile than ZENITH BANK PLC. It trades about 0.07 of its potential returns per unit of risk. ZENITH BANK PLC is currently generating about 0.07 per unit of risk. If you would invest 51.00 in UNITY BANK PLC on November 5, 2024 and sell it today you would earn a total of 100.00 from holding UNITY BANK PLC or generate 196.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
UNITY BANK PLC vs. ZENITH BANK PLC
Performance |
| Timeline |
| UNITY BANK PLC |
| ZENITH BANK PLC |
UNITY BANK and ZENITH BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITY BANK and ZENITH BANK
The main advantage of trading using opposite UNITY BANK and ZENITH BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITY BANK position performs unexpectedly, ZENITH 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 ZENITH BANK will offset losses from the drop in ZENITH BANK's long position.| UNITY BANK vs. LIVINGTRUST MORTGAGE BANK | UNITY BANK vs. ASO SAVINGS AND | UNITY BANK vs. UNITED BANK FOR | UNITY BANK vs. INDUSTRIAL MEDICAL GASES |
| ZENITH BANK vs. AIICO INSURANCE PLC | ZENITH BANK vs. C I LEASING | ZENITH BANK vs. GOLDEN GUINEA BREWERIES | ZENITH BANK vs. AFROMEDIA 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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