Correlation Between BUA FOODS and TOTALENERGIES MARKETING
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By analyzing existing cross correlation between BUA FOODS PLC and TOTALENERGIES MARKETING NIGERIA, you can compare the effects of market volatilities on BUA FOODS and TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and TOTALENERGIES MARKETING.
Diversification Opportunities for BUA FOODS and TOTALENERGIES MARKETING
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BUA and TOTALENERGIES is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC and TOTALENERGIES MARKETING NIGERI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTALENERGIES MARKETING has no effect on the direction of BUA FOODS i.e., BUA FOODS and TOTALENERGIES MARKETING go up and down completely randomly.
Pair Corralation between BUA FOODS and TOTALENERGIES MARKETING
Assuming the 90 days trading horizon BUA FOODS PLC is expected to generate 0.85 times more return on investment than TOTALENERGIES MARKETING. However, BUA FOODS PLC is 1.18 times less risky than TOTALENERGIES MARKETING. It trades about 0.25 of its potential returns per unit of risk. TOTALENERGIES MARKETING NIGERIA is currently generating about 0.16 per unit of risk. If you would invest 7,440 in BUA FOODS PLC on November 5, 2024 and sell it today you would earn a total of 34,060 from holding BUA FOODS PLC or generate 457.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BUA FOODS PLC vs. TOTALENERGIES MARKETING NIGERI
Performance |
| Timeline |
| BUA FOODS PLC |
| TOTALENERGIES MARKETING |
BUA FOODS and TOTALENERGIES MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and TOTALENERGIES MARKETING
The main advantage of trading using opposite BUA FOODS and TOTALENERGIES MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS position performs unexpectedly, TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING will offset losses from the drop in TOTALENERGIES MARKETING's long position.| BUA FOODS vs. STANDARD ALLIANCE INSURANCE | BUA FOODS vs. INTERNATIONAL ENERGY INSURANCE | BUA FOODS vs. CUSTODIAN INVESTMENT PLC | BUA FOODS vs. ECOBANK TRANSNATIONAL INCORPORATED |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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