Correlation Between FIDSON HEALTHCARE and Nigerian Stock
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By analyzing existing cross correlation between FIDSON HEALTHCARE PLC and Nigerian Stock Exchange, you can compare the effects of market volatilities on FIDSON HEALTHCARE and Nigerian Stock 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 Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDSON HEALTHCARE and Nigerian Stock.
Diversification Opportunities for FIDSON HEALTHCARE and Nigerian Stock
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between FIDSON and Nigerian is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding FIDSON HEALTHCARE PLC and Nigerian Stock Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nigerian Stock Exchange 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 Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nigerian Stock Exchange has no effect on the direction of FIDSON HEALTHCARE i.e., FIDSON HEALTHCARE and Nigerian Stock go up and down completely randomly.
Pair Corralation between FIDSON HEALTHCARE and Nigerian Stock
Assuming the 90 days trading horizon FIDSON HEALTHCARE PLC is expected to under-perform the Nigerian Stock. In addition to that, FIDSON HEALTHCARE is 4.92 times more volatile than Nigerian Stock Exchange. It trades about -0.06 of its total potential returns per unit of risk. Nigerian Stock Exchange is currently generating about 0.49 per unit of volatility. If you would invest 9,782,902 in Nigerian Stock Exchange on September 23, 2024 and sell it today you would earn a total of 329,998 from holding Nigerian Stock Exchange or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIDSON HEALTHCARE PLC vs. Nigerian Stock Exchange
Performance |
| Timeline |
FIDSON HEALTHCARE and Nigerian Stock Volatility Contrast
Predicted Return Density |
| Returns |
FIDSON HEALTHCARE PLC
Pair trading matchups for FIDSON HEALTHCARE
Nigerian Stock Exchange
Pair trading matchups for Nigerian Stock
Pair Trading with FIDSON HEALTHCARE and Nigerian Stock
The main advantage of trading using opposite FIDSON HEALTHCARE and Nigerian Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDSON HEALTHCARE position performs unexpectedly, Nigerian Stock 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 Stock will offset losses from the drop in Nigerian Stock's long position.| FIDSON HEALTHCARE vs. ZENITH BANK PLC | FIDSON HEALTHCARE vs. GUINEA INSURANCE PLC | FIDSON HEALTHCARE vs. SECURE ELECTRONIC TECHNOLOGY | FIDSON HEALTHCARE vs. SFS REAL ESTATE |
| Nigerian Stock vs. AFROMEDIA PLC | Nigerian Stock vs. FIDSON HEALTHCARE PLC | Nigerian Stock vs. TOTALENERGIES MARKETING NIGERIA | Nigerian Stock 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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