Correlation Between ZENITH BANK and AFROMEDIA PLC
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By analyzing existing cross correlation between ZENITH BANK PLC and AFROMEDIA PLC, you can compare the effects of market volatilities on ZENITH BANK and AFROMEDIA PLC 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 ZENITH BANK with a short position of AFROMEDIA PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZENITH BANK and AFROMEDIA PLC.
Diversification Opportunities for ZENITH BANK and AFROMEDIA PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZENITH and AFROMEDIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ZENITH BANK PLC and AFROMEDIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFROMEDIA PLC and ZENITH 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 ZENITH BANK PLC are associated (or correlated) with AFROMEDIA PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFROMEDIA PLC has no effect on the direction of ZENITH BANK i.e., ZENITH BANK and AFROMEDIA PLC go up and down completely randomly.
Pair Corralation between ZENITH BANK and AFROMEDIA PLC
Assuming the 90 days trading horizon ZENITH BANK PLC is expected to generate 2.24 times more return on investment than AFROMEDIA PLC. However, ZENITH BANK is 2.24 times more volatile than AFROMEDIA PLC. It trades about 0.06 of its potential returns per unit of risk. AFROMEDIA PLC is currently generating about 0.05 per unit of risk. If you would invest 2,800 in ZENITH BANK PLC on August 31, 2024 and sell it today you would earn a total of 1,600 from holding ZENITH BANK PLC or generate 57.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
ZENITH BANK PLC vs. AFROMEDIA PLC
Performance |
| Timeline |
| ZENITH BANK PLC |
| AFROMEDIA PLC |
ZENITH BANK and AFROMEDIA PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZENITH BANK and AFROMEDIA PLC
The main advantage of trading using opposite ZENITH BANK and AFROMEDIA PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZENITH BANK position performs unexpectedly, AFROMEDIA PLC 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 AFROMEDIA PLC will offset losses from the drop in AFROMEDIA PLC's long position.| ZENITH BANK vs. SECURE ELECTRONIC TECHNOLOGY | ZENITH BANK vs. VFD GROUP | ZENITH BANK vs. AFROMEDIA PLC | ZENITH BANK vs. DEAP CAPITAL MANAGEMENT |
| AFROMEDIA PLC vs. SOVEREIGN TRUST INSURANCE | AFROMEDIA PLC vs. GUINEA INSURANCE PLC | AFROMEDIA PLC vs. BUA FOODS PLC | AFROMEDIA PLC vs. MULTIVERSE MINING AND |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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