Correlation Between WEMA BANK and NPF MICRO
Specify exactly 2 symbols:
By analyzing existing cross correlation between WEMA BANK PLC and NPF MICRO FINANCE, you can compare the effects of market volatilities on WEMA BANK and NPF MICRO 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 NPF MICRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEMA BANK and NPF MICRO.
Diversification Opportunities for WEMA BANK and NPF MICRO
Very good diversification
The 3 months correlation between WEMA and NPF is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding WEMA BANK PLC and NPF MICRO FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NPF MICRO FINANCE 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 NPF MICRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NPF MICRO FINANCE has no effect on the direction of WEMA BANK i.e., WEMA BANK and NPF MICRO go up and down completely randomly.
Pair Corralation between WEMA BANK and NPF MICRO
Assuming the 90 days trading horizon WEMA BANK PLC is expected to generate 0.78 times more return on investment than NPF MICRO. However, WEMA BANK PLC is 1.27 times less risky than NPF MICRO. It trades about 0.16 of its potential returns per unit of risk. NPF MICRO FINANCE is currently generating about 0.02 per unit of risk. If you would invest 800.00 in WEMA BANK PLC on September 5, 2024 and sell it today you would earn a total of 70.00 from holding WEMA BANK PLC or generate 8.75% 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. NPF MICRO FINANCE
Performance |
| Timeline |
| WEMA BANK PLC |
| NPF MICRO FINANCE |
WEMA BANK and NPF MICRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEMA BANK and NPF MICRO
The main advantage of trading using opposite WEMA BANK and NPF MICRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEMA BANK position performs unexpectedly, NPF MICRO 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 NPF MICRO will offset losses from the drop in NPF MICRO's long position.| WEMA BANK vs. NEM INSURANCE PLC | WEMA BANK vs. INTERNATIONAL ENERGY INSURANCE | WEMA BANK vs. CORNERSTONE INSURANCE PLC | WEMA BANK vs. UNION HOMES SAVINGS |
| NPF MICRO vs. GOLDLINK INSURANCE PLC | NPF MICRO vs. AIICO INSURANCE PLC | NPF MICRO vs. AXAMANSARD INSURANCE PLC | NPF MICRO vs. NEM 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |