Correlation Between UNITY BANK and C I

Can any of the company-specific risk be diversified away by investing in both UNITY BANK 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 UNITY BANK and C I into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for UNITY BANK and C I

0.0

Correlation Coefficient

UNITY BANK  C I

Pay attention - limited upside

The 3 months correlation between UNITY and CILEASING is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UNITY BANK PLC 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 UNITY 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 UNITY BANK PLC 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 UNITY BANK i.e., UNITY BANK and C I go up and down completely randomly.

Pair Corralation between UNITY BANK and C I

Assuming the 90 days trading horizon UNITY BANK PLC is expected to generate 0.88 times more return on investment than C I. However, UNITY BANK PLC is 1.14 times less risky than C I. It trades about 0.02 of its potential returns per unit of risk. C I LEASING is currently generating about 0.01 per unit of risk. If you would invest  149.00  in UNITY BANK PLC on September 13, 2024 and sell it today you would earn a total of  2.00  from holding UNITY BANK PLC or generate 1.34% return on investment over 90 days.

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

UNITY BANK PLC  vs.  C I LEASING

UNITY BANK PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UNITY BANK PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, UNITY BANK is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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 current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with UNITY BANK and C I

The main advantage of trading using opposite UNITY BANK and C I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITY BANK 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 UNITY BANK PLC 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.