Correlation Between IKEJA HOTELS and AIRTEL AFRICA
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By analyzing existing cross correlation between IKEJA HOTELS PLC and AIRTEL AFRICA PLC, you can compare the effects of market volatilities on IKEJA HOTELS and AIRTEL AFRICA 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 IKEJA HOTELS with a short position of AIRTEL AFRICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and AIRTEL AFRICA.
Diversification Opportunities for IKEJA HOTELS and AIRTEL AFRICA
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IKEJA and AIRTEL is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and AIRTEL AFRICA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRTEL AFRICA PLC and IKEJA HOTELS 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 IKEJA HOTELS PLC are associated (or correlated) with AIRTEL AFRICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRTEL AFRICA PLC has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and AIRTEL AFRICA go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and AIRTEL AFRICA
Assuming the 90 days trading horizon IKEJA HOTELS PLC is expected to generate 3.13 times more return on investment than AIRTEL AFRICA. However, IKEJA HOTELS is 3.13 times more volatile than AIRTEL AFRICA PLC. It trades about 0.27 of its potential returns per unit of risk. AIRTEL AFRICA PLC is currently generating about 0.09 per unit of risk. If you would invest 1,230 in IKEJA HOTELS PLC on May 1, 2025 and sell it today you would earn a total of 1,080 from holding IKEJA HOTELS PLC or generate 87.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
IKEJA HOTELS PLC vs. AIRTEL AFRICA PLC
Performance |
| Timeline |
| IKEJA HOTELS PLC |
| AIRTEL AFRICA PLC |
Risk-Adjusted Performance
OK
Weak | Strong |
IKEJA HOTELS and AIRTEL AFRICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKEJA HOTELS and AIRTEL AFRICA
The main advantage of trading using opposite IKEJA HOTELS and AIRTEL AFRICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, AIRTEL AFRICA 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 AIRTEL AFRICA will offset losses from the drop in AIRTEL AFRICA's long position.| IKEJA HOTELS vs. SOVEREIGN TRUST INSURANCE | IKEJA HOTELS vs. AFRICAN ALLIANCE INSURANCE | IKEJA HOTELS vs. ECOBANK TRANSNATIONAL INCORPORATED | IKEJA HOTELS vs. UNITY BANK PLC |
| AIRTEL AFRICA vs. ECOBANK TRANSNATIONAL INCORPORATED | AIRTEL AFRICA vs. FORTIS GLOBAL INSURANCE | AIRTEL AFRICA vs. STERLING FINANCIAL HOLDINGS | AIRTEL AFRICA 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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