Correlation Between CHAMPION BREWERIES and NEIMETH INTERNATIONAL
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By analyzing existing cross correlation between CHAMPION BREWERIES PLC and NEIMETH INTERNATIONAL PHARMACEUTICAL, you can compare the effects of market volatilities on CHAMPION BREWERIES and NEIMETH INTERNATIONAL 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 CHAMPION BREWERIES with a short position of NEIMETH INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHAMPION BREWERIES and NEIMETH INTERNATIONAL.
Diversification Opportunities for CHAMPION BREWERIES and NEIMETH INTERNATIONAL
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between CHAMPION and NEIMETH is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding CHAMPION BREWERIES PLC and NEIMETH INTERNATIONAL PHARMACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEIMETH INTERNATIONAL and CHAMPION BREWERIES 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 CHAMPION BREWERIES PLC are associated (or correlated) with NEIMETH INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEIMETH INTERNATIONAL has no effect on the direction of CHAMPION BREWERIES i.e., CHAMPION BREWERIES and NEIMETH INTERNATIONAL go up and down completely randomly.
Pair Corralation between CHAMPION BREWERIES and NEIMETH INTERNATIONAL
Assuming the 90 days trading horizon CHAMPION BREWERIES is expected to generate 1.85 times less return on investment than NEIMETH INTERNATIONAL. But when comparing it to its historical volatility, CHAMPION BREWERIES PLC is 1.07 times less risky than NEIMETH INTERNATIONAL. It trades about 0.04 of its potential returns per unit of risk. NEIMETH INTERNATIONAL PHARMACEUTICAL is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 160.00 in NEIMETH INTERNATIONAL PHARMACEUTICAL on December 7, 2024 and sell it today you would earn a total of 140.00 from holding NEIMETH INTERNATIONAL PHARMACEUTICAL or generate 87.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHAMPION BREWERIES PLC vs. NEIMETH INTERNATIONAL PHARMACE
Performance |
| Timeline |
| CHAMPION BREWERIES PLC |
| NEIMETH INTERNATIONAL |
CHAMPION BREWERIES and NEIMETH INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHAMPION BREWERIES and NEIMETH INTERNATIONAL
The main advantage of trading using opposite CHAMPION BREWERIES and NEIMETH INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAMPION BREWERIES position performs unexpectedly, NEIMETH INTERNATIONAL 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 NEIMETH INTERNATIONAL will offset losses from the drop in NEIMETH INTERNATIONAL's long position.| CHAMPION BREWERIES vs. UNITY BANK PLC | CHAMPION BREWERIES vs. ZENITH BANK PLC | CHAMPION BREWERIES vs. STANDARD ALLIANCE INSURANCE | CHAMPION BREWERIES vs. ASO SAVINGS AND |
| NEIMETH INTERNATIONAL vs. STERLING FINANCIAL HOLDINGS | NEIMETH INTERNATIONAL vs. ZENITH BANK PLC | NEIMETH INTERNATIONAL vs. VETIVA INDUSTRIAL ETF | NEIMETH INTERNATIONAL vs. GOLDLINK INSURANCE 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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