Correlation Between WEMA BANK and AIICO INSURANCE
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By analyzing existing cross correlation between WEMA BANK PLC and AIICO INSURANCE PLC, you can compare the effects of market volatilities on WEMA 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 WEMA BANK with a short position of AIICO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEMA BANK and AIICO INSURANCE.
Diversification Opportunities for WEMA BANK and AIICO INSURANCE
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WEMA and AIICO is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding WEMA 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 WEMA 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 WEMA 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 WEMA BANK i.e., WEMA BANK and AIICO INSURANCE go up and down completely randomly.
Pair Corralation between WEMA BANK and AIICO INSURANCE
Assuming the 90 days trading horizon WEMA BANK PLC is expected to generate 0.94 times more return on investment than AIICO INSURANCE. However, WEMA BANK PLC is 1.07 times less risky than AIICO INSURANCE. It trades about 0.17 of its potential returns per unit of risk. AIICO INSURANCE PLC is currently generating about 0.05 per unit of risk. If you would invest 1,085 in WEMA BANK PLC on March 24, 2025 and sell it today you would earn a total of 315.00 from holding WEMA BANK PLC or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WEMA BANK PLC vs. AIICO INSURANCE PLC
Performance |
| Timeline |
| WEMA BANK PLC |
| AIICO INSURANCE PLC |
WEMA BANK and AIICO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEMA BANK and AIICO INSURANCE
The main advantage of trading using opposite WEMA BANK and AIICO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEMA 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.| WEMA BANK vs. MULTI TREX INTEGRATED FOODS | WEMA BANK vs. FORTIS GLOBAL INSURANCE | WEMA BANK vs. INTERNATIONAL BREWERIES PLC | WEMA BANK vs. TRANSCORP HOTELS PLC |
| AIICO INSURANCE vs. C I LEASING | AIICO INSURANCE vs. JAIZ BANK PLC | AIICO INSURANCE vs. CUSTODIAN INVESTMENT PLC | AIICO INSURANCE vs. INTERNATIONAL ENERGY 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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