Correlation Between ZENITH BANK and FIDELITY BANK
Specify exactly 2 symbols:
By analyzing existing cross correlation between ZENITH BANK PLC and FIDELITY BANK PLC, you can compare the effects of market volatilities on ZENITH BANK and FIDELITY 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 ZENITH BANK with a short position of FIDELITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZENITH BANK and FIDELITY BANK.
Diversification Opportunities for ZENITH BANK and FIDELITY BANK
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ZENITH and FIDELITY is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ZENITH BANK PLC and FIDELITY BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDELITY BANK 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 FIDELITY BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDELITY BANK PLC has no effect on the direction of ZENITH BANK i.e., ZENITH BANK and FIDELITY BANK go up and down completely randomly.
Pair Corralation between ZENITH BANK and FIDELITY BANK
Assuming the 90 days trading horizon ZENITH BANK is expected to generate 2.9 times less return on investment than FIDELITY BANK. But when comparing it to its historical volatility, ZENITH BANK PLC is 1.28 times less risky than FIDELITY BANK. It trades about 0.04 of its potential returns per unit of risk. FIDELITY BANK PLC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,905 in FIDELITY BANK PLC on January 30, 2025 and sell it today you would earn a total of 120.00 from holding FIDELITY BANK PLC or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZENITH BANK PLC vs. FIDELITY BANK PLC
Performance |
| Timeline |
| ZENITH BANK PLC |
| FIDELITY BANK PLC |
ZENITH BANK and FIDELITY BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZENITH BANK and FIDELITY BANK
The main advantage of trading using opposite ZENITH BANK and FIDELITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZENITH BANK position performs unexpectedly, FIDELITY 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 FIDELITY BANK will offset losses from the drop in FIDELITY BANK's long position.| ZENITH BANK vs. NEM INSURANCE PLC | ZENITH BANK vs. UNITY BANK PLC | ZENITH BANK vs. ECOBANK TRANSNATIONAL INCORPORATED | ZENITH BANK vs. JAIZ BANK PLC |
| FIDELITY BANK vs. ABC TRANSPORT PLC | FIDELITY BANK vs. NORTHERN NIGERIA FLOUR | FIDELITY BANK vs. NEWGOLD EXCHANGE TRADED | FIDELITY BANK vs. GUINEA INSURANCE 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |