Correlation Between GOLDEN GUINEA and TOTALENERGIES MARKETING
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By analyzing existing cross correlation between GOLDEN GUINEA BREWERIES and TOTALENERGIES MARKETING NIGERIA, you can compare the effects of market volatilities on GOLDEN GUINEA and TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDEN GUINEA and TOTALENERGIES MARKETING.
Diversification Opportunities for GOLDEN GUINEA and TOTALENERGIES MARKETING
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GOLDEN and TOTALENERGIES is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding GOLDEN GUINEA BREWERIES and TOTALENERGIES MARKETING NIGERI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTALENERGIES MARKETING has no effect on the direction of GOLDEN GUINEA i.e., GOLDEN GUINEA and TOTALENERGIES MARKETING go up and down completely randomly.
Pair Corralation between GOLDEN GUINEA and TOTALENERGIES MARKETING
Assuming the 90 days trading horizon GOLDEN GUINEA BREWERIES is expected to generate 1.17 times more return on investment than TOTALENERGIES MARKETING. However, GOLDEN GUINEA is 1.17 times more volatile than TOTALENERGIES MARKETING NIGERIA. It trades about 0.21 of its potential returns per unit of risk. TOTALENERGIES MARKETING NIGERIA is currently generating about 0.16 per unit of risk. If you would invest 89.00 in GOLDEN GUINEA BREWERIES on August 31, 2024 and sell it today you would earn a total of 281.00 from holding GOLDEN GUINEA BREWERIES or generate 315.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.73% |
| Values | Daily Returns |
GOLDEN GUINEA BREWERIES vs. TOTALENERGIES MARKETING NIGERI
Performance |
| Timeline |
| GOLDEN GUINEA BREWERIES |
| TOTALENERGIES MARKETING |
GOLDEN GUINEA and TOTALENERGIES MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDEN GUINEA and TOTALENERGIES MARKETING
The main advantage of trading using opposite GOLDEN GUINEA and TOTALENERGIES MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDEN GUINEA position performs unexpectedly, TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING will offset losses from the drop in TOTALENERGIES MARKETING'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 |
| TOTALENERGIES MARKETING vs. SECURE ELECTRONIC TECHNOLOGY | TOTALENERGIES MARKETING vs. VFD GROUP | TOTALENERGIES MARKETING vs. AFROMEDIA PLC | TOTALENERGIES MARKETING vs. DEAP CAPITAL MANAGEMENT |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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