Correlation Between WEMA BANK and UNITED BANK
Specify exactly 2 symbols:
By analyzing existing cross correlation between WEMA BANK PLC and UNITED BANK FOR, you can compare the effects of market volatilities on WEMA BANK and UNITED BANK 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 UNITED BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEMA BANK and UNITED BANK.
Diversification Opportunities for WEMA BANK and UNITED BANK
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WEMA and UNITED is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding WEMA BANK PLC and UNITED BANK FOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED BANK FOR 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 UNITED BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED BANK FOR has no effect on the direction of WEMA BANK i.e., WEMA BANK and UNITED BANK go up and down completely randomly.
Pair Corralation between WEMA BANK and UNITED BANK
Assuming the 90 days trading horizon WEMA BANK PLC is expected to generate 1.83 times more return on investment than UNITED BANK. However, WEMA BANK is 1.83 times more volatile than UNITED BANK FOR. It trades about 0.22 of its potential returns per unit of risk. UNITED BANK FOR is currently generating about 0.22 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WEMA BANK PLC vs. UNITED BANK FOR
Performance |
| Timeline |
| WEMA BANK PLC |
| UNITED BANK FOR |
WEMA BANK and UNITED BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEMA BANK and UNITED BANK
The main advantage of trading using opposite WEMA BANK and UNITED BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEMA BANK position performs unexpectedly, UNITED BANK 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 UNITED BANK will offset losses from the drop in UNITED BANK'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 |
| UNITED BANK vs. ABC TRANSPORT PLC | UNITED BANK vs. FIDSON HEALTHCARE PLC | UNITED BANK vs. INDUSTRIAL MEDICAL GASES | UNITED BANK vs. UNION HOMES REAL |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |