Correlation Between ZENITH BANK and UNITY BANK
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By analyzing existing cross correlation between ZENITH BANK PLC and UNITY BANK PLC, you can compare the effects of market volatilities on ZENITH BANK and UNITY 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 UNITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZENITH BANK and UNITY BANK.
Diversification Opportunities for ZENITH BANK and UNITY BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZENITH and UNITY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ZENITH BANK PLC and UNITY BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITY 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 UNITY BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITY BANK PLC has no effect on the direction of ZENITH BANK i.e., ZENITH BANK and UNITY BANK go up and down completely randomly.
Pair Corralation between ZENITH BANK and UNITY BANK
Assuming the 90 days trading horizon ZENITH BANK is expected to generate 1.88 times less return on investment than UNITY BANK. But when comparing it to its historical volatility, ZENITH BANK PLC is 1.81 times less risky than UNITY BANK. It trades about 0.07 of its potential returns per unit of risk. UNITY BANK PLC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 51.00 in UNITY BANK PLC on November 5, 2024 and sell it today you would earn a total of 100.00 from holding UNITY BANK PLC or generate 196.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
ZENITH BANK PLC vs. UNITY BANK PLC
Performance |
| Timeline |
| ZENITH BANK PLC |
| UNITY BANK PLC |
ZENITH BANK and UNITY BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZENITH BANK and UNITY BANK
The main advantage of trading using opposite ZENITH BANK and UNITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZENITH BANK position performs unexpectedly, UNITY 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 UNITY BANK will offset losses from the drop in UNITY BANK's long position.| ZENITH BANK vs. AIICO INSURANCE PLC | ZENITH BANK vs. C I LEASING | ZENITH BANK vs. GOLDEN GUINEA BREWERIES | ZENITH BANK vs. AFROMEDIA PLC |
| UNITY BANK vs. LIVINGTRUST MORTGAGE BANK | UNITY BANK vs. ASO SAVINGS AND | UNITY BANK vs. UNITED BANK FOR | UNITY BANK vs. INDUSTRIAL MEDICAL GASES |
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.
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