Correlation Between TRANS NATIONWIDE and ZENITH BANK
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By analyzing existing cross correlation between TRANS NATIONWIDE EXPRESS PLC and ZENITH BANK PLC, you can compare the effects of market volatilities on TRANS NATIONWIDE and ZENITH 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 TRANS NATIONWIDE with a short position of ZENITH BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRANS NATIONWIDE and ZENITH BANK.
Diversification Opportunities for TRANS NATIONWIDE and ZENITH BANK
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TRANS and ZENITH is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding TRANS NATIONWIDE EXPRESS PLC and ZENITH BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZENITH BANK PLC and TRANS NATIONWIDE 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 TRANS NATIONWIDE EXPRESS PLC are associated (or correlated) with ZENITH BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZENITH BANK PLC has no effect on the direction of TRANS NATIONWIDE i.e., TRANS NATIONWIDE and ZENITH BANK go up and down completely randomly.
Pair Corralation between TRANS NATIONWIDE and ZENITH BANK
Assuming the 90 days trading horizon TRANS NATIONWIDE is expected to generate 1.06 times less return on investment than ZENITH BANK. But when comparing it to its historical volatility, TRANS NATIONWIDE EXPRESS PLC is 1.38 times less risky than ZENITH BANK. It trades about 0.16 of its potential returns per unit of risk. ZENITH BANK PLC is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,750 in ZENITH BANK PLC on June 1, 2025 and sell it today you would earn a total of 2,850 from holding ZENITH BANK PLC or generate 76.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRANS NATIONWIDE EXPRESS PLC vs. ZENITH BANK PLC
Performance |
| Timeline |
| TRANS NATIONWIDE EXP |
| ZENITH BANK PLC |
TRANS NATIONWIDE and ZENITH BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRANS NATIONWIDE and ZENITH BANK
The main advantage of trading using opposite TRANS NATIONWIDE and ZENITH BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRANS NATIONWIDE position performs unexpectedly, ZENITH 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 ZENITH BANK will offset losses from the drop in ZENITH BANK's long position.| TRANS NATIONWIDE vs. GUINEA INSURANCE PLC | TRANS NATIONWIDE vs. ALUMINIUM EXTRUSION IND | TRANS NATIONWIDE vs. VITAFOAM NIGERIA PLC | TRANS NATIONWIDE vs. SECURE ELECTRONIC TECHNOLOGY |
| ZENITH BANK vs. STERLING FINANCIAL HOLDINGS | ZENITH BANK vs. AXAMANSARD INSURANCE PLC | ZENITH BANK vs. UNION HOMES REAL | ZENITH BANK vs. JAIZ 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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