Correlation Between IKEJA HOTELS and C I
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By analyzing existing cross correlation between IKEJA HOTELS PLC and C I LEASING, you can compare the effects of market volatilities on IKEJA HOTELS and C I 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 C I. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKEJA HOTELS and C I.
Diversification Opportunities for IKEJA HOTELS and C I
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IKEJA and CILEASING is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding IKEJA HOTELS PLC and C I LEASING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C I LEASING 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 C I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C I LEASING has no effect on the direction of IKEJA HOTELS i.e., IKEJA HOTELS and C I go up and down completely randomly.
Pair Corralation between IKEJA HOTELS and C I
Assuming the 90 days trading horizon IKEJA HOTELS PLC is expected to generate 1.04 times more return on investment than C I. However, IKEJA HOTELS is 1.04 times more volatile than C I LEASING. It trades about 0.1 of its potential returns per unit of risk. C I LEASING is currently generating about 0.04 per unit of risk. If you would invest 284.00 in IKEJA HOTELS PLC on April 2, 2025 and sell it today you would earn a total of 1,346 from holding IKEJA HOTELS PLC or generate 473.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IKEJA HOTELS PLC vs. C I LEASING
Performance |
| Timeline |
| IKEJA HOTELS PLC |
| C I LEASING |
IKEJA HOTELS and C I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKEJA HOTELS and C I
The main advantage of trading using opposite IKEJA HOTELS and C I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKEJA HOTELS position performs unexpectedly, C I 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 C I will offset losses from the drop in C I's long position.| IKEJA HOTELS vs. NOTORE CHEMICAL IND | IKEJA HOTELS vs. FORTIS GLOBAL INSURANCE | IKEJA HOTELS vs. SOVEREIGN TRUST INSURANCE | IKEJA HOTELS vs. GOLDEN GUINEA BREWERIES |
| C I vs. TRANSCORP HOTELS PLC | C I vs. VETIVA INDUSTRIAL ETF | C I vs. DN TYRE RUBBER | C I vs. FORTIS GLOBAL INSURANCE |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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