Correlation Between WEMA BANK and DEAP CAPITAL
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By analyzing existing cross correlation between WEMA BANK PLC and DEAP CAPITAL MANAGEMENT, you can compare the effects of market volatilities on WEMA BANK and DEAP CAPITAL 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 WEMA BANK with a short position of DEAP CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEMA BANK and DEAP CAPITAL.
Diversification Opportunities for WEMA BANK and DEAP CAPITAL
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WEMA and DEAP is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding WEMA BANK PLC and DEAP CAPITAL MANAGEMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEAP CAPITAL MANAGEMENT and WEMA 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 WEMA BANK PLC are associated (or correlated) with DEAP CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEAP CAPITAL MANAGEMENT has no effect on the direction of WEMA BANK i.e., WEMA BANK and DEAP CAPITAL go up and down completely randomly.
Pair Corralation between WEMA BANK and DEAP CAPITAL
Assuming the 90 days trading horizon WEMA BANK PLC is expected to generate 0.26 times more return on investment than DEAP CAPITAL. However, WEMA BANK PLC is 3.89 times less risky than DEAP CAPITAL. It trades about 0.34 of its potential returns per unit of risk. DEAP CAPITAL MANAGEMENT is currently generating about -0.07 per unit of risk. If you would invest 1,100 in WEMA BANK PLC on November 29, 2024 and sell it today you would earn a total of 100.00 from holding WEMA BANK PLC or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WEMA BANK PLC vs. DEAP CAPITAL MANAGEMENT
Performance |
| Timeline |
| WEMA BANK PLC |
| DEAP CAPITAL MANAGEMENT |
WEMA BANK and DEAP CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEMA BANK and DEAP CAPITAL
The main advantage of trading using opposite WEMA BANK and DEAP CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEMA BANK position performs unexpectedly, DEAP CAPITAL 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 DEAP CAPITAL will offset losses from the drop in DEAP CAPITAL's long position.| WEMA BANK vs. JAIZ BANK PLC | WEMA BANK vs. GOLDLINK INSURANCE PLC | WEMA BANK vs. NIGERIAN BREWERIES PLC | WEMA BANK vs. AFRICAN ALLIANCE INSURANCE |
| DEAP CAPITAL vs. AXAMANSARD INSURANCE PLC | DEAP CAPITAL vs. INDUSTRIAL MEDICAL GASES | DEAP CAPITAL vs. ABBEY MORTGAGE BANK | DEAP CAPITAL vs. UNITED BANK FOR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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