Correlation Between ABBEY MORTGAGE and NESTLE NIGERIA
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By analyzing existing cross correlation between ABBEY MORTGAGE BANK and NESTLE NIGERIA PLC, you can compare the effects of market volatilities on ABBEY MORTGAGE and NESTLE NIGERIA 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 ABBEY MORTGAGE with a short position of NESTLE NIGERIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABBEY MORTGAGE and NESTLE NIGERIA.
Diversification Opportunities for ABBEY MORTGAGE and NESTLE NIGERIA
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ABBEY and NESTLE is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding ABBEY MORTGAGE BANK and NESTLE NIGERIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTLE NIGERIA PLC and ABBEY MORTGAGE 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 ABBEY MORTGAGE BANK are associated (or correlated) with NESTLE NIGERIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTLE NIGERIA PLC has no effect on the direction of ABBEY MORTGAGE i.e., ABBEY MORTGAGE and NESTLE NIGERIA go up and down completely randomly.
Pair Corralation between ABBEY MORTGAGE and NESTLE NIGERIA
If you would invest 310.00 in ABBEY MORTGAGE BANK on December 8, 2024 and sell it today you would earn a total of 50.00 from holding ABBEY MORTGAGE BANK or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABBEY MORTGAGE BANK vs. NESTLE NIGERIA PLC
Performance |
| Timeline |
| ABBEY MORTGAGE BANK |
| NESTLE NIGERIA PLC |
ABBEY MORTGAGE and NESTLE NIGERIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABBEY MORTGAGE and NESTLE NIGERIA
The main advantage of trading using opposite ABBEY MORTGAGE and NESTLE NIGERIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABBEY MORTGAGE position performs unexpectedly, NESTLE NIGERIA 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 NESTLE NIGERIA will offset losses from the drop in NESTLE NIGERIA's long position.| ABBEY MORTGAGE vs. VITAFOAM NIGERIA PLC | ||
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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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