Correlation Between GOLDEN GUINEA and INTERNATIONAL BREWERIES
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By analyzing existing cross correlation between GOLDEN GUINEA BREWERIES and INTERNATIONAL BREWERIES PLC, you can compare the effects of market volatilities on GOLDEN GUINEA and INTERNATIONAL 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 GOLDEN GUINEA with a short position of INTERNATIONAL BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDEN GUINEA and INTERNATIONAL BREWERIES.
Diversification Opportunities for GOLDEN GUINEA and INTERNATIONAL BREWERIES
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GOLDEN and INTERNATIONAL is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding GOLDEN GUINEA BREWERIES and INTERNATIONAL BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL BREWERIES has no effect on the direction of GOLDEN GUINEA i.e., GOLDEN GUINEA and INTERNATIONAL BREWERIES go up and down completely randomly.
Pair Corralation between GOLDEN GUINEA and INTERNATIONAL BREWERIES
Assuming the 90 days trading horizon GOLDEN GUINEA BREWERIES is expected to generate 0.65 times more return on investment than INTERNATIONAL BREWERIES. However, GOLDEN GUINEA BREWERIES is 1.54 times less risky than INTERNATIONAL BREWERIES. It trades about 0.26 of its potential returns per unit of risk. INTERNATIONAL BREWERIES PLC is currently generating about 0.03 per unit of risk. If you would invest 81.00 in GOLDEN GUINEA BREWERIES on September 19, 2024 and sell it today you would earn a total of 783.00 from holding GOLDEN GUINEA BREWERIES or generate 966.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 78.89% |
| Values | Daily Returns |
GOLDEN GUINEA BREWERIES vs. INTERNATIONAL BREWERIES PLC
Performance |
| Timeline |
| GOLDEN GUINEA BREWERIES |
| INTERNATIONAL BREWERIES |
GOLDEN GUINEA and INTERNATIONAL BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDEN GUINEA and INTERNATIONAL BREWERIES
The main advantage of trading using opposite GOLDEN GUINEA and INTERNATIONAL BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDEN GUINEA position performs unexpectedly, INTERNATIONAL 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 INTERNATIONAL BREWERIES will offset losses from the drop in INTERNATIONAL BREWERIES'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 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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