Correlation Between FIDSON HEALTHCARE and NIGERIAN BREWERIES
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By analyzing existing cross correlation between FIDSON HEALTHCARE PLC and NIGERIAN BREWERIES PLC, you can compare the effects of market volatilities on FIDSON HEALTHCARE and NIGERIAN BREWERIES 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 FIDSON HEALTHCARE with a short position of NIGERIAN BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDSON HEALTHCARE and NIGERIAN BREWERIES.
Diversification Opportunities for FIDSON HEALTHCARE and NIGERIAN BREWERIES
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIDSON and NIGERIAN is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding FIDSON HEALTHCARE PLC and NIGERIAN BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGERIAN BREWERIES PLC and FIDSON HEALTHCARE 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 FIDSON HEALTHCARE PLC are associated (or correlated) with NIGERIAN BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGERIAN BREWERIES PLC has no effect on the direction of FIDSON HEALTHCARE i.e., FIDSON HEALTHCARE and NIGERIAN BREWERIES go up and down completely randomly.
Pair Corralation between FIDSON HEALTHCARE and NIGERIAN BREWERIES
Assuming the 90 days trading horizon FIDSON HEALTHCARE PLC is expected to generate 1.1 times more return on investment than NIGERIAN BREWERIES. However, FIDSON HEALTHCARE is 1.1 times more volatile than NIGERIAN BREWERIES PLC. It trades about 0.01 of its potential returns per unit of risk. NIGERIAN BREWERIES PLC is currently generating about -0.09 per unit of risk. If you would invest 1,540 in FIDSON HEALTHCARE PLC on September 1, 2024 and sell it today you would earn a total of 0.00 from holding FIDSON HEALTHCARE PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIDSON HEALTHCARE PLC vs. NIGERIAN BREWERIES PLC
Performance |
| Timeline |
| FIDSON HEALTHCARE PLC |
| NIGERIAN BREWERIES PLC |
FIDSON HEALTHCARE and NIGERIAN BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDSON HEALTHCARE and NIGERIAN BREWERIES
The main advantage of trading using opposite FIDSON HEALTHCARE and NIGERIAN BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDSON HEALTHCARE position performs unexpectedly, NIGERIAN BREWERIES 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 NIGERIAN BREWERIES will offset losses from the drop in NIGERIAN BREWERIES's long position.| FIDSON HEALTHCARE vs. MULTIVERSE MINING AND | FIDSON HEALTHCARE vs. STERLING FINANCIAL HOLDINGS | FIDSON HEALTHCARE vs. DN TYRE RUBBER | FIDSON HEALTHCARE vs. ZENITH BANK PLC |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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