Correlation Between BUA FOODS and UNITED BANK
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By analyzing existing cross correlation between BUA FOODS PLC and UNITED BANK FOR, you can compare the effects of market volatilities on BUA FOODS and UNITED BANK 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 UNITED BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and UNITED BANK.
Diversification Opportunities for BUA FOODS and UNITED BANK
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BUA and UNITED is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC and UNITED BANK FOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED BANK FOR 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 UNITED BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED BANK FOR has no effect on the direction of BUA FOODS i.e., BUA FOODS and UNITED BANK go up and down completely randomly.
Pair Corralation between BUA FOODS and UNITED BANK
If you would invest 2,890 in UNITED BANK FOR on August 28, 2024 and sell it today you would earn a total of 345.00 from holding UNITED BANK FOR or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BUA FOODS PLC vs. UNITED BANK FOR
Performance |
| Timeline |
| BUA FOODS PLC |
| UNITED BANK FOR |
BUA FOODS and UNITED BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and UNITED BANK
The main advantage of trading using opposite BUA FOODS and UNITED BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS position performs unexpectedly, UNITED BANK 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 UNITED BANK will offset losses from the drop in UNITED BANK's long position.| BUA FOODS vs. NOTORE CHEMICAL IND | BUA FOODS vs. TOTALENERGIES MARKETING NIGERIA | BUA FOODS vs. CUSTODIAN INVESTMENT PLC | BUA FOODS vs. UNITED BANK FOR |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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