Correlation Between WEMA BANK and TOTALENERGIES MARKETING
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By analyzing existing cross correlation between WEMA BANK PLC and TOTALENERGIES MARKETING NIGERIA, you can compare the effects of market volatilities on WEMA BANK and TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEMA BANK and TOTALENERGIES MARKETING.
Diversification Opportunities for WEMA BANK and TOTALENERGIES MARKETING
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WEMA and TOTALENERGIES is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding WEMA BANK PLC and TOTALENERGIES MARKETING NIGERI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTALENERGIES MARKETING has no effect on the direction of WEMA BANK i.e., WEMA BANK and TOTALENERGIES MARKETING go up and down completely randomly.
Pair Corralation between WEMA BANK and TOTALENERGIES MARKETING
Assuming the 90 days trading horizon WEMA BANK is expected to generate 1.45 times less return on investment than TOTALENERGIES MARKETING. In addition to that, WEMA BANK is 2.36 times more volatile than TOTALENERGIES MARKETING NIGERIA. It trades about 0.09 of its total potential returns per unit of risk. TOTALENERGIES MARKETING NIGERIA is currently generating about 0.32 per unit of volatility. If you would invest 63,000 in TOTALENERGIES MARKETING NIGERIA on November 5, 2024 and sell it today you would earn a total of 4,000 from holding TOTALENERGIES MARKETING NIGERIA or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
WEMA BANK PLC vs. TOTALENERGIES MARKETING NIGERI
Performance |
| Timeline |
| WEMA BANK PLC |
| TOTALENERGIES MARKETING |
WEMA BANK and TOTALENERGIES MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEMA BANK and TOTALENERGIES MARKETING
The main advantage of trading using opposite WEMA BANK and TOTALENERGIES MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEMA BANK position performs unexpectedly, TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING will offset losses from the drop in TOTALENERGIES MARKETING'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 |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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