Correlation Between WEMA BANK and STACO INSURANCE
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By analyzing existing cross correlation between WEMA BANK PLC and STACO INSURANCE PLC, you can compare the effects of market volatilities on WEMA BANK and STACO INSURANCE 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 STACO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEMA BANK and STACO INSURANCE.
Diversification Opportunities for WEMA BANK and STACO INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WEMA and STACO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WEMA BANK PLC and STACO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STACO INSURANCE PLC 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 STACO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STACO INSURANCE PLC has no effect on the direction of WEMA BANK i.e., WEMA BANK and STACO INSURANCE go up and down completely randomly.
Pair Corralation between WEMA BANK and STACO INSURANCE
If you would invest 348.00 in WEMA BANK PLC on November 5, 2024 and sell it today you would earn a total of 797.00 from holding WEMA BANK PLC or generate 229.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
WEMA BANK PLC vs. STACO INSURANCE PLC
Performance |
| Timeline |
| WEMA BANK PLC |
| STACO INSURANCE PLC |
WEMA BANK and STACO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEMA BANK and STACO INSURANCE
The main advantage of trading using opposite WEMA BANK and STACO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEMA BANK position performs unexpectedly, STACO INSURANCE 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 STACO INSURANCE will offset losses from the drop in STACO INSURANCE's long position.| WEMA BANK vs. DN TYRE RUBBER | WEMA BANK vs. TOTALENERGIES MARKETING NIGERIA | WEMA BANK vs. NIGERIAN BREWERIES PLC | WEMA BANK vs. BUA FOODS PLC |
| STACO INSURANCE vs. UNITED BANK FOR | STACO INSURANCE vs. INTERNATIONAL BREWERIES PLC | STACO INSURANCE vs. ZENITH BANK PLC | STACO INSURANCE vs. JAIZ BANK 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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