Correlation Between VFD GROUP and IKEJA HOTELS
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By analyzing existing cross correlation between VFD GROUP and IKEJA HOTELS PLC, you can compare the effects of market volatilities on VFD GROUP and IKEJA HOTELS 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 IKEJA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of VFD GROUP and IKEJA HOTELS.
Diversification Opportunities for VFD GROUP and IKEJA HOTELS
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VFD and IKEJA is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding VFD GROUP and IKEJA HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKEJA HOTELS 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 IKEJA HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKEJA HOTELS PLC has no effect on the direction of VFD GROUP i.e., VFD GROUP and IKEJA HOTELS go up and down completely randomly.
Pair Corralation between VFD GROUP and IKEJA HOTELS
Assuming the 90 days trading horizon VFD GROUP is expected to under-perform the IKEJA HOTELS. But the stock apears to be less risky and, when comparing its historical volatility, VFD GROUP is 1.26 times less risky than IKEJA HOTELS. The stock trades about 0.0 of its potential returns per unit of risk. The IKEJA HOTELS PLC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 805.00 in IKEJA HOTELS PLC on September 12, 2024 and sell it today you would lose (5.00) from holding IKEJA HOTELS PLC or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VFD GROUP vs. IKEJA HOTELS PLC
Performance |
| Timeline |
| VFD GROUP |
| IKEJA HOTELS PLC |
VFD GROUP and IKEJA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VFD GROUP and IKEJA HOTELS
The main advantage of trading using opposite VFD GROUP and IKEJA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VFD GROUP position performs unexpectedly, IKEJA HOTELS 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 IKEJA HOTELS will offset losses from the drop in IKEJA HOTELS's long position.| VFD GROUP vs. IKEJA HOTELS PLC | VFD GROUP vs. AIICO INSURANCE PLC | VFD GROUP vs. GOLDLINK INSURANCE PLC | VFD GROUP vs. SOVEREIGN TRUST INSURANCE |
| IKEJA HOTELS vs. GUINEA INSURANCE PLC | IKEJA HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | IKEJA HOTELS vs. VFD GROUP | IKEJA HOTELS vs. VETIVA S P |
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 Positions Ratings module to 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.
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