Correlation Between ECOBANK TRANSNATIONAL and C I

Can any of the company-specific risk be diversified away by investing in both ECOBANK TRANSNATIONAL and C I at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ECOBANK TRANSNATIONAL and C I into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ECOBANK TRANSNATIONAL INCORPORATED and C I LEASING, you can compare the effects of market volatilities on ECOBANK TRANSNATIONAL and C I 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 ECOBANK TRANSNATIONAL with a short position of C I. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECOBANK TRANSNATIONAL and C I.

Diversification Opportunities for ECOBANK TRANSNATIONAL and C I

-0.17

Correlation Coefficient

ECOBANK TRANSNATIONAL  C I

Good diversification

The 3 months correlation between ECOBANK and CILEASING is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ECOBANK TRANSNATIONAL INCORPOR and C I LEASING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C I LEASING and ECOBANK TRANSNATIONAL 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 ECOBANK TRANSNATIONAL INCORPORATED are associated (or correlated) with C I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C I LEASING has no effect on the direction of ECOBANK TRANSNATIONAL i.e., ECOBANK TRANSNATIONAL and C I go up and down completely randomly.

Pair Corralation between ECOBANK TRANSNATIONAL and C I

Assuming the 90 days trading horizon ECOBANK TRANSNATIONAL INCORPORATED is expected to generate 0.44 times more return on investment than C I. However, ECOBANK TRANSNATIONAL INCORPORATED is 2.28 times less risky than C I. It trades about 0.2 of its potential returns per unit of risk. C I LEASING is currently generating about 0.02 per unit of risk. If you would invest  2,090  in ECOBANK TRANSNATIONAL INCORPORATED on September 5, 2024 and sell it today you would earn a total of  460.00  from holding ECOBANK TRANSNATIONAL INCORPORATED or generate 22.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ECOBANK TRANSNATIONAL INCORPOR  vs.  C I LEASING

ECOBANK TRANSNATIONAL

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ECOBANK TRANSNATIONAL INCORPORATED are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, ECOBANK TRANSNATIONAL unveiled solid returns over the last few months and may actually be approaching a breakup point.

C I LEASING

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in C I LEASING are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, C I is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with ECOBANK TRANSNATIONAL and C I

The main advantage of trading using opposite ECOBANK TRANSNATIONAL and C I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECOBANK TRANSNATIONAL position performs unexpectedly, C I 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 C I will offset losses from the drop in C I's long position.

The idea behind ECOBANK TRANSNATIONAL INCORPORATED and C I LEASING pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.