Correlation Between TRANSCORP HOTELS and WEMA BANK
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By analyzing existing cross correlation between TRANSCORP HOTELS PLC and WEMA BANK PLC, you can compare the effects of market volatilities on TRANSCORP HOTELS and WEMA 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 TRANSCORP HOTELS with a short position of WEMA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRANSCORP HOTELS and WEMA BANK.
Diversification Opportunities for TRANSCORP HOTELS and WEMA BANK
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TRANSCORP and WEMA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding TRANSCORP HOTELS PLC and WEMA BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEMA BANK 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 WEMA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEMA BANK PLC has no effect on the direction of TRANSCORP HOTELS i.e., TRANSCORP HOTELS and WEMA BANK go up and down completely randomly.
Pair Corralation between TRANSCORP HOTELS and WEMA BANK
Assuming the 90 days trading horizon TRANSCORP HOTELS PLC is expected to under-perform the WEMA BANK. But the stock apears to be less risky and, when comparing its historical volatility, TRANSCORP HOTELS PLC is 1.03 times less risky than WEMA BANK. The stock trades about -0.01 of its potential returns per unit of risk. The WEMA BANK PLC is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,090 in WEMA BANK PLC on March 27, 2025 and sell it today you would earn a total of 395.00 from holding WEMA BANK PLC or generate 36.24% 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. WEMA BANK PLC
Performance |
| Timeline |
| TRANSCORP HOTELS PLC |
| WEMA BANK PLC |
TRANSCORP HOTELS and WEMA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRANSCORP HOTELS and WEMA BANK
The main advantage of trading using opposite TRANSCORP HOTELS and WEMA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRANSCORP HOTELS position performs unexpectedly, WEMA 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 WEMA BANK will offset losses from the drop in WEMA BANK's long position.| TRANSCORP HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | TRANSCORP HOTELS vs. INTERNATIONAL ENERGY INSURANCE | TRANSCORP HOTELS vs. CORNERSTONE INSURANCE PLC | TRANSCORP HOTELS vs. IKEJA HOTELS PLC |
| WEMA BANK vs. UNIVERSAL INSURANCE PANY | WEMA BANK vs. UNITY BANK PLC | WEMA BANK vs. TRANSCORP HOTELS PLC | WEMA BANK 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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