Correlation Between VFD GROUP and FIDELITY BANK
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By analyzing existing cross correlation between VFD GROUP and FIDELITY BANK PLC, you can compare the effects of market volatilities on VFD GROUP and FIDELITY 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 VFD GROUP with a short position of FIDELITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of VFD GROUP and FIDELITY BANK.
Diversification Opportunities for VFD GROUP and FIDELITY BANK
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VFD and FIDELITY is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding VFD GROUP and FIDELITY BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDELITY BANK PLC and VFD GROUP 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 VFD GROUP are associated (or correlated) with FIDELITY BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDELITY BANK PLC has no effect on the direction of VFD GROUP i.e., VFD GROUP and FIDELITY BANK go up and down completely randomly.
Pair Corralation between VFD GROUP and FIDELITY BANK
Assuming the 90 days trading horizon VFD GROUP is expected to under-perform the FIDELITY BANK. In addition to that, VFD GROUP is 1.32 times more volatile than FIDELITY BANK PLC. It trades about -0.07 of its total potential returns per unit of risk. FIDELITY BANK PLC is currently generating about 0.09 per unit of volatility. If you would invest 579.00 in FIDELITY BANK PLC on August 31, 2024 and sell it today you would earn a total of 951.00 from holding FIDELITY BANK PLC or generate 164.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.72% |
| Values | Daily Returns |
VFD GROUP vs. FIDELITY BANK PLC
Performance |
| Timeline |
| VFD GROUP |
| FIDELITY BANK PLC |
VFD GROUP and FIDELITY BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VFD GROUP and FIDELITY BANK
The main advantage of trading using opposite VFD GROUP and FIDELITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VFD GROUP position performs unexpectedly, FIDELITY 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 FIDELITY BANK will offset losses from the drop in FIDELITY BANK's long position.| VFD GROUP vs. ASO SAVINGS AND | VFD GROUP vs. MULTIVERSE MINING AND | VFD GROUP vs. BUA FOODS PLC | VFD GROUP vs. CORNERSTONE INSURANCE PLC |
| FIDELITY BANK vs. SECURE ELECTRONIC TECHNOLOGY | FIDELITY BANK vs. VFD GROUP | FIDELITY BANK vs. AFROMEDIA PLC | FIDELITY BANK vs. DEAP CAPITAL MANAGEMENT |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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