Correlation Between BUA FOODS and THOMAS WYATT
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By analyzing existing cross correlation between BUA FOODS PLC and THOMAS WYATT NIGERIA, you can compare the effects of market volatilities on BUA FOODS and THOMAS WYATT 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 THOMAS WYATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and THOMAS WYATT.
Diversification Opportunities for BUA FOODS and THOMAS WYATT
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BUA and THOMAS is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC and THOMAS WYATT NIGERIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THOMAS WYATT NIGERIA 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 THOMAS WYATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THOMAS WYATT NIGERIA has no effect on the direction of BUA FOODS i.e., BUA FOODS and THOMAS WYATT go up and down completely randomly.
Pair Corralation between BUA FOODS and THOMAS WYATT
Assuming the 90 days trading horizon BUA FOODS is expected to generate 3.7 times less return on investment than THOMAS WYATT. But when comparing it to its historical volatility, BUA FOODS PLC is 3.07 times less risky than THOMAS WYATT. It trades about 0.23 of its potential returns per unit of risk. THOMAS WYATT NIGERIA is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 171.00 in THOMAS WYATT NIGERIA on October 25, 2024 and sell it today you would earn a total of 33.00 from holding THOMAS WYATT NIGERIA or generate 19.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BUA FOODS PLC vs. THOMAS WYATT NIGERIA
Performance |
| Timeline |
| BUA FOODS PLC |
| THOMAS WYATT NIGERIA |
BUA FOODS and THOMAS WYATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and THOMAS WYATT
The main advantage of trading using opposite BUA FOODS and THOMAS WYATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS position performs unexpectedly, THOMAS WYATT 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 THOMAS WYATT will offset losses from the drop in THOMAS WYATT's long position.| BUA FOODS vs. GUINEA INSURANCE PLC | BUA FOODS vs. SECURE ELECTRONIC TECHNOLOGY | BUA FOODS vs. VETIVA BANKING ETF | BUA FOODS vs. INTERNATIONAL BREWERIES PLC |
| THOMAS WYATT vs. GUINEA INSURANCE PLC | THOMAS WYATT vs. SECURE ELECTRONIC TECHNOLOGY | THOMAS WYATT vs. VETIVA BANKING ETF | THOMAS WYATT 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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