Correlation Between ECOBANK TRANSNATIONAL and VFD GROUP
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By analyzing existing cross correlation between ECOBANK TRANSNATIONAL INCORPORATED and VFD GROUP, you can compare the effects of market volatilities on ECOBANK TRANSNATIONAL and VFD GROUP 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 ECOBANK TRANSNATIONAL with a short position of VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECOBANK TRANSNATIONAL and VFD GROUP.
Diversification Opportunities for ECOBANK TRANSNATIONAL and VFD GROUP
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ECOBANK and VFD is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding ECOBANK TRANSNATIONAL INCORPOR and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP and ECOBANK TRANSNATIONAL 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 ECOBANK TRANSNATIONAL INCORPORATED are associated (or correlated) with VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of ECOBANK TRANSNATIONAL i.e., ECOBANK TRANSNATIONAL and VFD GROUP go up and down completely randomly.
Pair Corralation between ECOBANK TRANSNATIONAL and VFD GROUP
Assuming the 90 days trading horizon ECOBANK TRANSNATIONAL INCORPORATED is expected to generate 0.85 times more return on investment than VFD GROUP. However, ECOBANK TRANSNATIONAL INCORPORATED is 1.18 times less risky than VFD GROUP. It trades about 0.21 of its potential returns per unit of risk. VFD GROUP is currently generating about -0.09 per unit of risk. If you would invest 2,600 in ECOBANK TRANSNATIONAL INCORPORATED on May 2, 2025 and sell it today you would earn a total of 1,150 from holding ECOBANK TRANSNATIONAL INCORPORATED or generate 44.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECOBANK TRANSNATIONAL INCORPOR vs. VFD GROUP
Performance |
| Timeline |
| ECOBANK TRANSNATIONAL |
| VFD GROUP |
ECOBANK TRANSNATIONAL and VFD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECOBANK TRANSNATIONAL and VFD GROUP
The main advantage of trading using opposite ECOBANK TRANSNATIONAL and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECOBANK TRANSNATIONAL position performs unexpectedly, VFD GROUP 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 VFD GROUP will offset losses from the drop in VFD GROUP's long position.| ECOBANK TRANSNATIONAL vs. IKEJA HOTELS PLC | ECOBANK TRANSNATIONAL vs. DN TYRE RUBBER | ECOBANK TRANSNATIONAL vs. FIDELITY BANK PLC | ECOBANK TRANSNATIONAL vs. WEMA BANK PLC |
| VFD GROUP vs. GUINEA INSURANCE PLC | VFD GROUP vs. ALUMINIUM EXTRUSION IND | VFD GROUP vs. VITAFOAM NIGERIA PLC | VFD GROUP vs. SECURE ELECTRONIC TECHNOLOGY |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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