Correlation Between ZENITH BANK and LIVINGTRUST MORTGAGE
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By analyzing existing cross correlation between ZENITH BANK PLC and LIVINGTRUST MORTGAGE BANK, you can compare the effects of market volatilities on ZENITH BANK and LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZENITH BANK and LIVINGTRUST MORTGAGE.
Diversification Opportunities for ZENITH BANK and LIVINGTRUST MORTGAGE
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZENITH and LIVINGTRUST is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ZENITH BANK PLC and LIVINGTRUST MORTGAGE BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIVINGTRUST MORTGAGE BANK 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 LIVINGTRUST MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIVINGTRUST MORTGAGE BANK has no effect on the direction of ZENITH BANK i.e., ZENITH BANK and LIVINGTRUST MORTGAGE go up and down completely randomly.
Pair Corralation between ZENITH BANK and LIVINGTRUST MORTGAGE
Assuming the 90 days trading horizon ZENITH BANK is expected to generate 1.59 times less return on investment than LIVINGTRUST MORTGAGE. But when comparing it to its historical volatility, ZENITH BANK PLC is 2.38 times less risky than LIVINGTRUST MORTGAGE. It trades about 0.33 of its potential returns per unit of risk. LIVINGTRUST MORTGAGE BANK is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 300.00 in LIVINGTRUST MORTGAGE BANK on September 24, 2024 and sell it today you would earn a total of 30.00 from holding LIVINGTRUST MORTGAGE BANK or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZENITH BANK PLC vs. LIVINGTRUST MORTGAGE BANK
Performance |
| Timeline |
| ZENITH BANK PLC |
| LIVINGTRUST MORTGAGE BANK |
ZENITH BANK and LIVINGTRUST MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZENITH BANK and LIVINGTRUST MORTGAGE
The main advantage of trading using opposite ZENITH BANK and LIVINGTRUST MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZENITH BANK position performs unexpectedly, LIVINGTRUST MORTGAGE 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 LIVINGTRUST MORTGAGE will offset losses from the drop in LIVINGTRUST MORTGAGE's long position.| ZENITH BANK vs. GUINEA INSURANCE PLC | ZENITH BANK vs. SECURE ELECTRONIC TECHNOLOGY | ZENITH BANK vs. SFS REAL ESTATE | ZENITH BANK vs. CHELLARAMS PLC |
| LIVINGTRUST MORTGAGE vs. ZENITH BANK PLC | LIVINGTRUST MORTGAGE vs. GUINEA INSURANCE PLC | LIVINGTRUST MORTGAGE vs. SECURE ELECTRONIC TECHNOLOGY | LIVINGTRUST MORTGAGE vs. SFS REAL ESTATE |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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