Correlation Between ZENITH BANK and CONSOLIDATED HALLMARK
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By analyzing existing cross correlation between ZENITH BANK PLC and CONSOLIDATED HALLMARK INSURANCE, you can compare the effects of market volatilities on ZENITH BANK and CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZENITH BANK and CONSOLIDATED HALLMARK.
Diversification Opportunities for ZENITH BANK and CONSOLIDATED HALLMARK
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZENITH and CONSOLIDATED is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ZENITH BANK PLC and CONSOLIDATED HALLMARK INSURANC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED HALLMARK has no effect on the direction of ZENITH BANK i.e., ZENITH BANK and CONSOLIDATED HALLMARK go up and down completely randomly.
Pair Corralation between ZENITH BANK and CONSOLIDATED HALLMARK
Assuming the 90 days trading horizon ZENITH BANK PLC is expected to generate 0.43 times more return on investment than CONSOLIDATED HALLMARK. However, ZENITH BANK PLC is 2.32 times less risky than CONSOLIDATED HALLMARK. It trades about 0.29 of its potential returns per unit of risk. CONSOLIDATED HALLMARK INSURANCE is currently generating about -0.35 per unit of risk. If you would invest 4,585 in ZENITH BANK PLC on November 2, 2024 and sell it today you would earn a total of 480.00 from holding ZENITH BANK PLC or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZENITH BANK PLC vs. CONSOLIDATED HALLMARK INSURANC
Performance |
| Timeline |
| ZENITH BANK PLC |
| CONSOLIDATED HALLMARK |
ZENITH BANK and CONSOLIDATED HALLMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZENITH BANK and CONSOLIDATED HALLMARK
The main advantage of trading using opposite ZENITH BANK and CONSOLIDATED HALLMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZENITH BANK position performs unexpectedly, CONSOLIDATED HALLMARK 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 CONSOLIDATED HALLMARK will offset losses from the drop in CONSOLIDATED HALLMARK's long position.| ZENITH BANK vs. GUINEA INSURANCE PLC | ZENITH BANK vs. SECURE ELECTRONIC TECHNOLOGY | ZENITH BANK vs. VETIVA BANKING ETF | ZENITH 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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