Correlation Between BUA FOODS and TRANSCORP HOTELS
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By analyzing existing cross correlation between BUA FOODS PLC and TRANSCORP HOTELS PLC, you can compare the effects of market volatilities on BUA FOODS and TRANSCORP HOTELS 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 TRANSCORP HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and TRANSCORP HOTELS.
Diversification Opportunities for BUA FOODS and TRANSCORP HOTELS
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BUA and TRANSCORP is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC and TRANSCORP HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCORP HOTELS 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 TRANSCORP HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCORP HOTELS PLC has no effect on the direction of BUA FOODS i.e., BUA FOODS and TRANSCORP HOTELS go up and down completely randomly.
Pair Corralation between BUA FOODS and TRANSCORP HOTELS
If you would invest 41,500 in BUA FOODS PLC on November 5, 2024 and sell it today you would earn a total of 0.00 from holding BUA FOODS PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BUA FOODS PLC vs. TRANSCORP HOTELS PLC
Performance |
| Timeline |
| BUA FOODS PLC |
| TRANSCORP HOTELS PLC |
BUA FOODS and TRANSCORP HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and TRANSCORP HOTELS
The main advantage of trading using opposite BUA FOODS and TRANSCORP HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS position performs unexpectedly, TRANSCORP HOTELS 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 TRANSCORP HOTELS will offset losses from the drop in TRANSCORP HOTELS's long position.| BUA FOODS vs. C I LEASING | BUA FOODS vs. ASO SAVINGS AND | BUA FOODS vs. DEAP CAPITAL MANAGEMENT | BUA FOODS vs. INTERNATIONAL BREWERIES PLC |
| TRANSCORP HOTELS vs. GUINEA INSURANCE PLC | TRANSCORP HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | TRANSCORP HOTELS vs. VFD GROUP | TRANSCORP HOTELS 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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