Correlation Between ZENITH BANK and STERLING FINANCIAL
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By analyzing existing cross correlation between ZENITH BANK PLC and STERLING FINANCIAL HOLDINGS, you can compare the effects of market volatilities on ZENITH BANK and STERLING FINANCIAL 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 STERLING FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZENITH BANK and STERLING FINANCIAL.
Diversification Opportunities for ZENITH BANK and STERLING FINANCIAL
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZENITH and STERLING is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ZENITH BANK PLC and STERLING FINANCIAL HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STERLING FINANCIAL 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 STERLING FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STERLING FINANCIAL has no effect on the direction of ZENITH BANK i.e., ZENITH BANK and STERLING FINANCIAL go up and down completely randomly.
Pair Corralation between ZENITH BANK and STERLING FINANCIAL
Assuming the 90 days trading horizon ZENITH BANK is expected to generate 17.68 times less return on investment than STERLING FINANCIAL. In addition to that, ZENITH BANK is 1.11 times more volatile than STERLING FINANCIAL HOLDINGS. It trades about 0.0 of its total potential returns per unit of risk. STERLING FINANCIAL HOLDINGS is currently generating about 0.08 per unit of volatility. If you would invest 529.00 in STERLING FINANCIAL HOLDINGS on February 3, 2025 and sell it today you would earn a total of 21.00 from holding STERLING FINANCIAL HOLDINGS or generate 3.97% 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. STERLING FINANCIAL HOLDINGS
Performance |
| Timeline |
| ZENITH BANK PLC |
| STERLING FINANCIAL |
ZENITH BANK and STERLING FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZENITH BANK and STERLING FINANCIAL
The main advantage of trading using opposite ZENITH BANK and STERLING FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZENITH BANK position performs unexpectedly, STERLING FINANCIAL 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 STERLING FINANCIAL will offset losses from the drop in STERLING FINANCIAL's long position.| ZENITH BANK vs. ABC TRANSPORT PLC | ZENITH BANK vs. NORTHERN NIGERIA FLOUR | ZENITH BANK vs. NEWGOLD EXCHANGE TRADED | ZENITH BANK vs. GUINEA INSURANCE PLC |
| STERLING FINANCIAL vs. ABC TRANSPORT PLC | STERLING FINANCIAL vs. NORTHERN NIGERIA FLOUR | STERLING FINANCIAL vs. NEWGOLD EXCHANGE TRADED | STERLING FINANCIAL 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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