Correlation Between FIDELITY BANK and CAVERTON OFFSHORE
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By analyzing existing cross correlation between FIDELITY BANK PLC and CAVERTON OFFSHORE SUPPORT, you can compare the effects of market volatilities on FIDELITY BANK and CAVERTON OFFSHORE 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 FIDELITY BANK with a short position of CAVERTON OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDELITY BANK and CAVERTON OFFSHORE.
Diversification Opportunities for FIDELITY BANK and CAVERTON OFFSHORE
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FIDELITY and CAVERTON is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY BANK PLC and CAVERTON OFFSHORE SUPPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVERTON OFFSHORE SUPPORT and FIDELITY 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 FIDELITY BANK PLC are associated (or correlated) with CAVERTON OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVERTON OFFSHORE SUPPORT has no effect on the direction of FIDELITY BANK i.e., FIDELITY BANK and CAVERTON OFFSHORE go up and down completely randomly.
Pair Corralation between FIDELITY BANK and CAVERTON OFFSHORE
Assuming the 90 days trading horizon FIDELITY BANK is expected to generate 5.56 times less return on investment than CAVERTON OFFSHORE. But when comparing it to its historical volatility, FIDELITY BANK PLC is 3.61 times less risky than CAVERTON OFFSHORE. It trades about 0.12 of its potential returns per unit of risk. CAVERTON OFFSHORE SUPPORT is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 390.00 in CAVERTON OFFSHORE SUPPORT on June 3, 2025 and sell it today you would earn a total of 300.00 from holding CAVERTON OFFSHORE SUPPORT or generate 76.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIDELITY BANK PLC vs. CAVERTON OFFSHORE SUPPORT
Performance |
| Timeline |
| FIDELITY BANK PLC |
| CAVERTON OFFSHORE SUPPORT |
FIDELITY BANK and CAVERTON OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDELITY BANK and CAVERTON OFFSHORE
The main advantage of trading using opposite FIDELITY BANK and CAVERTON OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDELITY BANK position performs unexpectedly, CAVERTON OFFSHORE 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 CAVERTON OFFSHORE will offset losses from the drop in CAVERTON OFFSHORE's long position.| FIDELITY BANK vs. NEM INSURANCE PLC | FIDELITY BANK vs. STERLING FINANCIAL HOLDINGS | FIDELITY BANK vs. BUA FOODS PLC | FIDELITY BANK vs. INDUSTRIAL MEDICAL GASES |
| CAVERTON OFFSHORE vs. GUINEA INSURANCE PLC | CAVERTON OFFSHORE vs. ALUMINIUM EXTRUSION IND | CAVERTON OFFSHORE vs. SECURE ELECTRONIC TECHNOLOGY | CAVERTON OFFSHORE vs. SFS REAL ESTATE |
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 Stocks Directory module to find actively traded stocks across global markets.
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