Correlation Between FORTIS GLOBAL and UNITY BANK

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Can any of the company-specific risk be diversified away by investing in both FORTIS GLOBAL and UNITY BANK at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining FORTIS GLOBAL and UNITY BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORTIS GLOBAL INSURANCE and UNITY BANK PLC, you can compare the effects of market volatilities on FORTIS GLOBAL 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 FORTIS GLOBAL with a short position of UNITY BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORTIS GLOBAL and UNITY BANK.

Diversification Opportunities for FORTIS GLOBAL and UNITY BANK

-1.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between FORTIS and UNITY is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding FORTIS GLOBAL INSURANCE 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 FORTIS GLOBAL 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 FORTIS GLOBAL INSURANCE 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 FORTIS GLOBAL i.e., FORTIS GLOBAL and UNITY BANK go up and down completely randomly.

Pair Corralation between FORTIS GLOBAL and UNITY BANK

If you would invest  151.00  in UNITY BANK PLC on August 31, 2025 and sell it today you would earn a total of  0.00  from holding UNITY BANK PLC or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

FORTIS GLOBAL INSURANCE  vs.  UNITY BANK PLC

 Performance 
       Timeline  
FORTIS GLOBAL INSURANCE 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days FORTIS GLOBAL INSURANCE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, FORTIS GLOBAL is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
UNITY BANK PLC 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days UNITY BANK PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, UNITY BANK is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

FORTIS GLOBAL and UNITY BANK Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FORTIS GLOBAL and UNITY BANK

The main advantage of trading using opposite FORTIS GLOBAL and UNITY BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORTIS GLOBAL 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.
The idea behind FORTIS GLOBAL INSURANCE and UNITY BANK PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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