Correlation Between VETIVA BANKING and NPF MICRO
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By analyzing existing cross correlation between VETIVA BANKING ETF and NPF MICRO FINANCE, you can compare the effects of market volatilities on VETIVA BANKING and NPF MICRO 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 VETIVA BANKING with a short position of NPF MICRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of VETIVA BANKING and NPF MICRO.
Diversification Opportunities for VETIVA BANKING and NPF MICRO
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VETIVA and NPF is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding VETIVA BANKING ETF and NPF MICRO FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NPF MICRO FINANCE and VETIVA BANKING 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 VETIVA BANKING ETF are associated (or correlated) with NPF MICRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NPF MICRO FINANCE has no effect on the direction of VETIVA BANKING i.e., VETIVA BANKING and NPF MICRO go up and down completely randomly.
Pair Corralation between VETIVA BANKING and NPF MICRO
Assuming the 90 days trading horizon VETIVA BANKING ETF is expected to generate 0.4 times more return on investment than NPF MICRO. However, VETIVA BANKING ETF is 2.5 times less risky than NPF MICRO. It trades about 0.18 of its potential returns per unit of risk. NPF MICRO FINANCE is currently generating about -0.02 per unit of risk. If you would invest 935.00 in VETIVA BANKING ETF on September 13, 2024 and sell it today you would earn a total of 85.00 from holding VETIVA BANKING ETF or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VETIVA BANKING ETF vs. NPF MICRO FINANCE
Performance |
| Timeline |
| VETIVA BANKING ETF |
| NPF MICRO FINANCE |
VETIVA BANKING and NPF MICRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VETIVA BANKING and NPF MICRO
The main advantage of trading using opposite VETIVA BANKING and NPF MICRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VETIVA BANKING position performs unexpectedly, NPF MICRO 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 NPF MICRO will offset losses from the drop in NPF MICRO's long position.| VETIVA BANKING vs. GUINEA INSURANCE PLC | VETIVA BANKING vs. SECURE ELECTRONIC TECHNOLOGY | VETIVA BANKING vs. VFD GROUP | VETIVA BANKING vs. IKEJA HOTELS PLC |
| NPF MICRO vs. CORONATION INSURANCE PLC | NPF MICRO vs. VETIVA BANKING ETF | NPF MICRO vs. GUINEA INSURANCE PLC | NPF MICRO vs. STANDARD ALLIANCE INSURANCE |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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