Correlation Between UNITED BANK and MERISTEM GROWTH
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By analyzing existing cross correlation between UNITED BANK FOR and MERISTEM GROWTH EXCHANGE, you can compare the effects of market volatilities on UNITED BANK and MERISTEM GROWTH 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 UNITED BANK with a short position of MERISTEM GROWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITED BANK and MERISTEM GROWTH.
Diversification Opportunities for UNITED BANK and MERISTEM GROWTH
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNITED and MERISTEM is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding UNITED BANK FOR and MERISTEM GROWTH EXCHANGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MERISTEM GROWTH EXCHANGE and UNITED 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 UNITED BANK FOR are associated (or correlated) with MERISTEM GROWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MERISTEM GROWTH EXCHANGE has no effect on the direction of UNITED BANK i.e., UNITED BANK and MERISTEM GROWTH go up and down completely randomly.
Pair Corralation between UNITED BANK and MERISTEM GROWTH
Assuming the 90 days trading horizon UNITED BANK is expected to generate 1.88 times less return on investment than MERISTEM GROWTH. But when comparing it to its historical volatility, UNITED BANK FOR is 1.82 times less risky than MERISTEM GROWTH. It trades about 0.15 of its potential returns per unit of risk. MERISTEM GROWTH EXCHANGE is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 41,580 in MERISTEM GROWTH EXCHANGE on June 5, 2025 and sell it today you would earn a total of 23,720 from holding MERISTEM GROWTH EXCHANGE or generate 57.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.36% |
| Values | Daily Returns |
UNITED BANK FOR vs. MERISTEM GROWTH EXCHANGE
Performance |
| Timeline |
| UNITED BANK FOR |
| MERISTEM GROWTH EXCHANGE |
UNITED BANK and MERISTEM GROWTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITED BANK and MERISTEM GROWTH
The main advantage of trading using opposite UNITED BANK and MERISTEM GROWTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED BANK position performs unexpectedly, MERISTEM GROWTH 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 MERISTEM GROWTH will offset losses from the drop in MERISTEM GROWTH's long position.| UNITED BANK vs. GUINEA INSURANCE PLC | UNITED BANK vs. ALUMINIUM EXTRUSION IND | UNITED BANK vs. VITAFOAM NIGERIA PLC | UNITED BANK vs. JAPAUL OIL MARITIME |
| MERISTEM GROWTH vs. ECOBANK TRANSNATIONAL INCORPORATED | MERISTEM GROWTH vs. AXAMANSARD INSURANCE PLC | MERISTEM GROWTH vs. UNITED BANK FOR | MERISTEM GROWTH vs. AFRICAN ALLIANCE 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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