Correlation Between TRANSCORP HOTELS and FIDSON HEALTHCARE
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By analyzing existing cross correlation between TRANSCORP HOTELS PLC and FIDSON HEALTHCARE PLC, you can compare the effects of market volatilities on TRANSCORP HOTELS and FIDSON HEALTHCARE 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 TRANSCORP HOTELS with a short position of FIDSON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRANSCORP HOTELS and FIDSON HEALTHCARE.
Diversification Opportunities for TRANSCORP HOTELS and FIDSON HEALTHCARE
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TRANSCORP and FIDSON is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding TRANSCORP HOTELS PLC and FIDSON HEALTHCARE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDSON HEALTHCARE PLC and TRANSCORP 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 TRANSCORP HOTELS PLC are associated (or correlated) with FIDSON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDSON HEALTHCARE PLC has no effect on the direction of TRANSCORP HOTELS i.e., TRANSCORP HOTELS and FIDSON HEALTHCARE go up and down completely randomly.
Pair Corralation between TRANSCORP HOTELS and FIDSON HEALTHCARE
Assuming the 90 days trading horizon TRANSCORP HOTELS is expected to generate 3.65 times less return on investment than FIDSON HEALTHCARE. But when comparing it to its historical volatility, TRANSCORP HOTELS PLC is 1.35 times less risky than FIDSON HEALTHCARE. It trades about 0.09 of its potential returns per unit of risk. FIDSON HEALTHCARE PLC is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,800 in FIDSON HEALTHCARE PLC on May 31, 2025 and sell it today you would earn a total of 1,500 from holding FIDSON HEALTHCARE PLC or generate 53.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRANSCORP HOTELS PLC vs. FIDSON HEALTHCARE PLC
Performance |
| Timeline |
| TRANSCORP HOTELS PLC |
| FIDSON HEALTHCARE PLC |
TRANSCORP HOTELS and FIDSON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRANSCORP HOTELS and FIDSON HEALTHCARE
The main advantage of trading using opposite TRANSCORP HOTELS and FIDSON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRANSCORP HOTELS position performs unexpectedly, FIDSON HEALTHCARE 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 FIDSON HEALTHCARE will offset losses from the drop in FIDSON HEALTHCARE's long position.| TRANSCORP HOTELS vs. GUINEA INSURANCE PLC | TRANSCORP HOTELS vs. ALUMINIUM EXTRUSION IND | TRANSCORP HOTELS vs. VITAFOAM NIGERIA PLC | TRANSCORP HOTELS vs. SECURE ELECTRONIC TECHNOLOGY |
| FIDSON HEALTHCARE vs. FIDELITY BANK PLC | FIDSON HEALTHCARE vs. JAIZ BANK PLC | FIDSON HEALTHCARE vs. DN TYRE RUBBER | FIDSON HEALTHCARE vs. ZENITH BANK PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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