Correlation Between BUA FOODS and NESTLE NIGERIA
Specify exactly 2 symbols:
By analyzing existing cross correlation between BUA FOODS PLC and NESTLE NIGERIA PLC, you can compare the effects of market volatilities on BUA FOODS 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 BUA FOODS with a short position of NESTLE NIGERIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and NESTLE NIGERIA.
Diversification Opportunities for BUA FOODS and NESTLE NIGERIA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BUA and NESTLE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC 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 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 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 BUA FOODS i.e., BUA FOODS and NESTLE NIGERIA go up and down completely randomly.
Pair Corralation between BUA FOODS and NESTLE NIGERIA
Assuming the 90 days trading horizon BUA FOODS PLC is expected to generate 1.02 times more return on investment than NESTLE NIGERIA. However, BUA FOODS is 1.02 times more volatile than NESTLE NIGERIA PLC. It trades about 0.25 of its potential returns per unit of risk. NESTLE NIGERIA PLC is currently generating about -0.03 per unit of risk. If you would invest 6,500 in BUA FOODS PLC on September 19, 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 | 99.8% |
| Values | Daily Returns |
BUA FOODS PLC vs. NESTLE NIGERIA PLC
Performance |
| Timeline |
| BUA FOODS PLC |
| NESTLE NIGERIA PLC |
BUA FOODS and NESTLE NIGERIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and NESTLE NIGERIA
The main advantage of trading using opposite BUA FOODS and NESTLE NIGERIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS 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.| BUA FOODS vs. GUINEA INSURANCE PLC | BUA FOODS vs. SECURE ELECTRONIC TECHNOLOGY | BUA FOODS vs. VFD GROUP | BUA FOODS vs. IKEJA HOTELS PLC |
| NESTLE NIGERIA vs. INDUSTRIAL MEDICAL GASES | NESTLE NIGERIA vs. SECURE ELECTRONIC TECHNOLOGY | NESTLE NIGERIA vs. AIICO INSURANCE PLC | NESTLE NIGERIA vs. BUA FOODS 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |