Correlation Between CHELLARAMS PLC and IKEJA HOTELS
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By analyzing existing cross correlation between CHELLARAMS PLC and IKEJA HOTELS PLC, you can compare the effects of market volatilities on CHELLARAMS PLC and IKEJA HOTELS 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 CHELLARAMS PLC with a short position of IKEJA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHELLARAMS PLC and IKEJA HOTELS.
Diversification Opportunities for CHELLARAMS PLC and IKEJA HOTELS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CHELLARAMS and IKEJA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CHELLARAMS PLC and IKEJA HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKEJA HOTELS PLC and CHELLARAMS PLC 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 CHELLARAMS PLC are associated (or correlated) with IKEJA HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKEJA HOTELS PLC has no effect on the direction of CHELLARAMS PLC i.e., CHELLARAMS PLC and IKEJA HOTELS go up and down completely randomly.
Pair Corralation between CHELLARAMS PLC and IKEJA HOTELS
Assuming the 90 days trading horizon CHELLARAMS PLC is expected to generate 2.17 times less return on investment than IKEJA HOTELS. But when comparing it to its historical volatility, CHELLARAMS PLC is 1.05 times less risky than IKEJA HOTELS. It trades about 0.11 of its potential returns per unit of risk. IKEJA HOTELS PLC is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,030 in IKEJA HOTELS PLC on March 30, 2025 and sell it today you would earn a total of 600.00 from holding IKEJA HOTELS PLC or generate 58.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.28% |
| Values | Daily Returns |
CHELLARAMS PLC vs. IKEJA HOTELS PLC
Performance |
| Timeline |
| CHELLARAMS PLC |
Risk-Adjusted Performance
OK
Weak | Strong |
| IKEJA HOTELS PLC |
CHELLARAMS PLC and IKEJA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHELLARAMS PLC and IKEJA HOTELS
The main advantage of trading using opposite CHELLARAMS PLC and IKEJA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHELLARAMS PLC position performs unexpectedly, IKEJA HOTELS 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 IKEJA HOTELS will offset losses from the drop in IKEJA HOTELS's long position.| CHELLARAMS PLC vs. BUA FOODS PLC | CHELLARAMS PLC vs. LIVINGTRUST MORTGAGE BANK | CHELLARAMS PLC vs. CORNERSTONE INSURANCE PLC | CHELLARAMS PLC vs. DEAP CAPITAL MANAGEMENT |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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