Correlation Between WEMA BANK and INTERNATIONAL ENERGY
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By analyzing existing cross correlation between WEMA BANK PLC and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on WEMA BANK and INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEMA BANK and INTERNATIONAL ENERGY.
Diversification Opportunities for WEMA BANK and INTERNATIONAL ENERGY
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WEMA and INTERNATIONAL is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding WEMA BANK PLC and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of WEMA BANK i.e., WEMA BANK and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between WEMA BANK and INTERNATIONAL ENERGY
Assuming the 90 days trading horizon WEMA BANK PLC is expected to generate 0.69 times more return on investment than INTERNATIONAL ENERGY. However, WEMA BANK PLC is 1.46 times less risky than INTERNATIONAL ENERGY. It trades about 0.22 of its potential returns per unit of risk. INTERNATIONAL ENERGY INSURANCE is currently generating about 0.05 per unit of risk. If you would invest 1,000.00 in WEMA BANK PLC on November 4, 2024 and sell it today you would earn a total of 145.00 from holding WEMA BANK PLC or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WEMA BANK PLC vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| WEMA BANK PLC |
| INTERNATIONAL ENERGY |
WEMA BANK and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEMA BANK and INTERNATIONAL ENERGY
The main advantage of trading using opposite WEMA BANK and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEMA BANK position performs unexpectedly, INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY will offset losses from the drop in INTERNATIONAL ENERGY's long position.| WEMA BANK vs. DEAP CAPITAL MANAGEMENT | WEMA BANK vs. AFROMEDIA PLC | WEMA BANK vs. UNION HOMES SAVINGS | WEMA BANK vs. NOTORE CHEMICAL IND |
| INTERNATIONAL ENERGY vs. FIDELITY BANK PLC | INTERNATIONAL ENERGY vs. AXAMANSARD INSURANCE PLC | INTERNATIONAL ENERGY vs. STANDARD ALLIANCE INSURANCE | INTERNATIONAL ENERGY vs. CORNERSTONE INSURANCE PLC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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