Correlation Between ZENITH BANK and UNITED BANK
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By analyzing existing cross correlation between ZENITH BANK PLC and UNITED BANK FOR, you can compare the effects of market volatilities on ZENITH BANK and UNITED 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 UNITED BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZENITH BANK and UNITED BANK.
Diversification Opportunities for ZENITH BANK and UNITED BANK
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ZENITH and UNITED is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ZENITH BANK PLC and UNITED BANK FOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED BANK FOR 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 UNITED BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED BANK FOR has no effect on the direction of ZENITH BANK i.e., ZENITH BANK and UNITED BANK go up and down completely randomly.
Pair Corralation between ZENITH BANK and UNITED BANK
Assuming the 90 days trading horizon ZENITH BANK PLC is expected to generate 1.08 times more return on investment than UNITED BANK. However, ZENITH BANK is 1.08 times more volatile than UNITED BANK FOR. It trades about 0.1 of its potential returns per unit of risk. UNITED BANK FOR is currently generating about -0.1 per unit of risk. If you would invest 4,600 in ZENITH BANK PLC on October 24, 2024 and sell it today you would earn a total of 120.00 from holding ZENITH BANK PLC or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZENITH BANK PLC vs. UNITED BANK FOR
Performance |
| Timeline |
| ZENITH BANK PLC |
| UNITED BANK FOR |
ZENITH BANK and UNITED BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZENITH BANK and UNITED BANK
The main advantage of trading using opposite ZENITH BANK and UNITED BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZENITH BANK position performs unexpectedly, UNITED 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 UNITED BANK will offset losses from the drop in UNITED BANK's long position.| ZENITH BANK vs. STERLING FINANCIAL HOLDINGS | ZENITH BANK vs. GOLDLINK INSURANCE PLC | ZENITH BANK vs. NEM INSURANCE PLC | ZENITH BANK vs. AFROMEDIA PLC |
| UNITED BANK vs. CUSTODIAN INVESTMENT PLC | UNITED BANK vs. AFRICAN ALLIANCE INSURANCE | UNITED BANK vs. CHAMPION BREWERIES PLC | UNITED BANK vs. ZENITH BANK 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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