Correlation Between JAIZ BANK and AIICO INSURANCE
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By analyzing existing cross correlation between JAIZ BANK PLC and AIICO INSURANCE PLC, you can compare the effects of market volatilities on JAIZ BANK and AIICO INSURANCE 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 JAIZ BANK with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAIZ BANK and AIICO INSURANCE.
Diversification Opportunities for JAIZ BANK and AIICO INSURANCE
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JAIZ and AIICO is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding JAIZ BANK PLC and AIICO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIICO INSURANCE PLC and JAIZ 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 JAIZ BANK PLC are associated (or correlated) with AIICO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIICO INSURANCE PLC has no effect on the direction of JAIZ BANK i.e., JAIZ BANK and AIICO INSURANCE go up and down completely randomly.
Pair Corralation between JAIZ BANK and AIICO INSURANCE
Assuming the 90 days trading horizon JAIZ BANK PLC is expected to under-perform the AIICO INSURANCE. In addition to that, JAIZ BANK is 1.32 times more volatile than AIICO INSURANCE PLC. It trades about -0.09 of its total potential returns per unit of risk. AIICO INSURANCE PLC is currently generating about 0.03 per unit of volatility. If you would invest 159.00 in AIICO INSURANCE PLC on March 25, 2025 and sell it today you would earn a total of 1.00 from holding AIICO INSURANCE PLC or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAIZ BANK PLC vs. AIICO INSURANCE PLC
Performance |
| Timeline |
| JAIZ BANK PLC |
| AIICO INSURANCE PLC |
JAIZ BANK and AIICO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAIZ BANK and AIICO INSURANCE
The main advantage of trading using opposite JAIZ BANK and AIICO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAIZ BANK position performs unexpectedly, AIICO INSURANCE 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 AIICO INSURANCE will offset losses from the drop in AIICO INSURANCE's long position.| JAIZ BANK vs. WEMA BANK PLC | JAIZ BANK vs. INTERNATIONAL BREWERIES PLC | JAIZ BANK vs. STERLING FINANCIAL HOLDINGS | JAIZ BANK vs. NEM INSURANCE PLC |
| AIICO INSURANCE vs. ZENITH BANK PLC | AIICO INSURANCE vs. AXAMANSARD INSURANCE PLC | AIICO INSURANCE vs. C I LEASING | AIICO INSURANCE vs. UNIVERSAL INSURANCE PANY |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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