Correlation Between VETIVA BANKING and UNITED BANK
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By analyzing existing cross correlation between VETIVA BANKING ETF and UNITED BANK FOR, you can compare the effects of market volatilities on VETIVA BANKING and UNITED 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 VETIVA BANKING with a short position of UNITED BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of VETIVA BANKING and UNITED BANK.
Diversification Opportunities for VETIVA BANKING and UNITED BANK
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VETIVA and UNITED is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding VETIVA BANKING ETF and UNITED BANK FOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED BANK FOR 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 UNITED BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED BANK FOR has no effect on the direction of VETIVA BANKING i.e., VETIVA BANKING and UNITED BANK go up and down completely randomly.
Pair Corralation between VETIVA BANKING and UNITED BANK
Assuming the 90 days trading horizon VETIVA BANKING is expected to generate 1.69 times less return on investment than UNITED BANK. But when comparing it to its historical volatility, VETIVA BANKING ETF is 1.31 times less risky than UNITED BANK. It trades about 0.09 of its potential returns per unit of risk. UNITED BANK FOR is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 745.00 in UNITED BANK FOR on September 12, 2024 and sell it today you would earn a total of 2,585 from holding UNITED BANK FOR or generate 346.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VETIVA BANKING ETF vs. UNITED BANK FOR
Performance |
| Timeline |
| VETIVA BANKING ETF |
| UNITED BANK FOR |
VETIVA BANKING and UNITED BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VETIVA BANKING and UNITED BANK
The main advantage of trading using opposite VETIVA BANKING and UNITED BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VETIVA BANKING position performs unexpectedly, UNITED 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 UNITED BANK will offset losses from the drop in UNITED BANK'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 |
| UNITED BANK vs. CORONATION INSURANCE PLC | UNITED BANK vs. STACO INSURANCE PLC | UNITED BANK vs. STERLING FINANCIAL HOLDINGS | UNITED BANK vs. VETIVA BANKING ETF |
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.
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