Correlation Between BUA FOODS and AXAMANSARD INSURANCE
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By analyzing existing cross correlation between BUA FOODS PLC and AXAMANSARD INSURANCE PLC, you can compare the effects of market volatilities on BUA FOODS and AXAMANSARD 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 BUA FOODS with a short position of AXAMANSARD INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and AXAMANSARD INSURANCE.
Diversification Opportunities for BUA FOODS and AXAMANSARD INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BUA and AXAMANSARD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC and AXAMANSARD INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXAMANSARD INSURANCE PLC and BUA FOODS 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 BUA FOODS PLC are associated (or correlated) with AXAMANSARD INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXAMANSARD INSURANCE PLC has no effect on the direction of BUA FOODS i.e., BUA FOODS and AXAMANSARD INSURANCE go up and down completely randomly.
Pair Corralation between BUA FOODS and AXAMANSARD INSURANCE
Assuming the 90 days trading horizon BUA FOODS PLC is expected to generate 0.48 times more return on investment than AXAMANSARD INSURANCE. However, BUA FOODS PLC is 2.08 times less risky than AXAMANSARD INSURANCE. It trades about 0.25 of its potential returns per unit of risk. AXAMANSARD INSURANCE PLC is currently generating about 0.1 per unit of risk. If you would invest 6,500 in BUA FOODS PLC on September 14, 2024 and sell it today you would earn a total of 32,990 from holding BUA FOODS PLC or generate 507.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BUA FOODS PLC vs. AXAMANSARD INSURANCE PLC
Performance |
| Timeline |
| BUA FOODS PLC |
| AXAMANSARD INSURANCE PLC |
BUA FOODS and AXAMANSARD INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and AXAMANSARD INSURANCE
The main advantage of trading using opposite BUA FOODS and AXAMANSARD INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS position performs unexpectedly, AXAMANSARD 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 AXAMANSARD INSURANCE will offset losses from the drop in AXAMANSARD INSURANCE's long position.| BUA FOODS vs. GUINEA INSURANCE PLC | BUA FOODS vs. SECURE ELECTRONIC TECHNOLOGY | BUA FOODS vs. VFD GROUP | BUA FOODS vs. IKEJA HOTELS PLC |
| AXAMANSARD INSURANCE vs. GUINEA INSURANCE PLC | AXAMANSARD INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | AXAMANSARD INSURANCE vs. VFD GROUP | AXAMANSARD INSURANCE vs. IKEJA HOTELS PLC |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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