Correlation Between GOLDEN GUINEA and IKEJA HOTELS
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By analyzing existing cross correlation between GOLDEN GUINEA BREWERIES and IKEJA HOTELS PLC, you can compare the effects of market volatilities on GOLDEN GUINEA and IKEJA HOTELS 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 IKEJA HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDEN GUINEA and IKEJA HOTELS.
Diversification Opportunities for GOLDEN GUINEA and IKEJA HOTELS
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GOLDEN and IKEJA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding GOLDEN GUINEA BREWERIES and IKEJA HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKEJA HOTELS 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 IKEJA HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKEJA HOTELS PLC has no effect on the direction of GOLDEN GUINEA i.e., GOLDEN GUINEA and IKEJA HOTELS go up and down completely randomly.
Pair Corralation between GOLDEN GUINEA and IKEJA HOTELS
Assuming the 90 days trading horizon GOLDEN GUINEA BREWERIES is expected to generate 0.47 times more return on investment than IKEJA HOTELS. However, GOLDEN GUINEA BREWERIES is 2.12 times less risky than IKEJA HOTELS. It trades about 0.2 of its potential returns per unit of risk. IKEJA HOTELS PLC is currently generating about 0.07 per unit of risk. If you would invest 315.00 in GOLDEN GUINEA BREWERIES on September 14, 2024 and sell it today you would earn a total of 473.00 from holding GOLDEN GUINEA BREWERIES or generate 150.16% 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. IKEJA HOTELS PLC
Performance |
| Timeline |
| GOLDEN GUINEA BREWERIES |
| IKEJA HOTELS PLC |
GOLDEN GUINEA and IKEJA HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDEN GUINEA and IKEJA HOTELS
The main advantage of trading using opposite GOLDEN GUINEA and IKEJA HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDEN GUINEA position performs unexpectedly, IKEJA HOTELS 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 IKEJA HOTELS will offset losses from the drop in IKEJA HOTELS's long position.| GOLDEN GUINEA vs. GUINEA INSURANCE PLC | GOLDEN GUINEA vs. SECURE ELECTRONIC TECHNOLOGY | GOLDEN GUINEA vs. VFD GROUP | GOLDEN GUINEA vs. IKEJA HOTELS PLC |
| IKEJA HOTELS vs. GUINEA INSURANCE PLC | IKEJA HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | IKEJA HOTELS vs. VFD GROUP | IKEJA HOTELS vs. VETIVA S P |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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