Correlation Between GOLDEN GUINEA and FIDSON HEALTHCARE
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By analyzing existing cross correlation between GOLDEN GUINEA BREWERIES and FIDSON HEALTHCARE PLC, you can compare the effects of market volatilities on GOLDEN GUINEA and FIDSON HEALTHCARE 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 GOLDEN GUINEA with a short position of FIDSON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDEN GUINEA and FIDSON HEALTHCARE.
Diversification Opportunities for GOLDEN GUINEA and FIDSON HEALTHCARE
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GOLDEN and FIDSON is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GOLDEN GUINEA BREWERIES and FIDSON HEALTHCARE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDSON HEALTHCARE PLC and GOLDEN GUINEA 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 GOLDEN GUINEA BREWERIES are associated (or correlated) with FIDSON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDSON HEALTHCARE PLC has no effect on the direction of GOLDEN GUINEA i.e., GOLDEN GUINEA and FIDSON HEALTHCARE go up and down completely randomly.
Pair Corralation between GOLDEN GUINEA and FIDSON HEALTHCARE
Assuming the 90 days trading horizon GOLDEN GUINEA BREWERIES is expected to under-perform the FIDSON HEALTHCARE. But the stock apears to be less risky and, when comparing its historical volatility, GOLDEN GUINEA BREWERIES is 7.92 times less risky than FIDSON HEALTHCARE. The stock trades about -0.21 of its potential returns per unit of risk. The FIDSON HEALTHCARE PLC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,540 in FIDSON HEALTHCARE PLC on August 31, 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 |
GOLDEN GUINEA BREWERIES vs. FIDSON HEALTHCARE PLC
Performance |
Timeline |
GOLDEN GUINEA BREWERIES |
FIDSON HEALTHCARE PLC |
GOLDEN GUINEA and FIDSON HEALTHCARE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GOLDEN GUINEA and FIDSON HEALTHCARE
The main advantage of trading using opposite GOLDEN GUINEA and FIDSON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDEN GUINEA position performs unexpectedly, FIDSON HEALTHCARE 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 FIDSON HEALTHCARE will offset losses from the drop in FIDSON HEALTHCARE's long position.GOLDEN GUINEA vs. ZENITH BANK PLC | GOLDEN GUINEA vs. NEM INSURANCE PLC | GOLDEN GUINEA vs. AIICO INSURANCE PLC | GOLDEN GUINEA vs. UNITY 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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