Correlation Between GREENWICH ASSET and NIGERIAN BREWERIES
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By analyzing existing cross correlation between GREENWICH ASSET ETF and NIGERIAN BREWERIES PLC, you can compare the effects of market volatilities on GREENWICH ASSET and NIGERIAN 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 GREENWICH ASSET with a short position of NIGERIAN BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENWICH ASSET and NIGERIAN BREWERIES.
Diversification Opportunities for GREENWICH ASSET and NIGERIAN BREWERIES
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GREENWICH and NIGERIAN is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding GREENWICH ASSET ETF and NIGERIAN BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGERIAN BREWERIES PLC and GREENWICH ASSET 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 GREENWICH ASSET ETF are associated (or correlated) with NIGERIAN BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGERIAN BREWERIES PLC has no effect on the direction of GREENWICH ASSET i.e., GREENWICH ASSET and NIGERIAN BREWERIES go up and down completely randomly.
Pair Corralation between GREENWICH ASSET and NIGERIAN BREWERIES
Assuming the 90 days trading horizon GREENWICH ASSET ETF is expected to generate 3.01 times more return on investment than NIGERIAN BREWERIES. However, GREENWICH ASSET is 3.01 times more volatile than NIGERIAN BREWERIES PLC. It trades about 0.0 of its potential returns per unit of risk. NIGERIAN BREWERIES PLC is currently generating about -0.22 per unit of risk. If you would invest 53,400 in GREENWICH ASSET ETF on October 25, 2024 and sell it today you would lose (500.00) from holding GREENWICH ASSET ETF or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENWICH ASSET ETF vs. NIGERIAN BREWERIES PLC
Performance |
| Timeline |
| GREENWICH ASSET ETF |
| NIGERIAN BREWERIES PLC |
GREENWICH ASSET and NIGERIAN BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENWICH ASSET and NIGERIAN BREWERIES
The main advantage of trading using opposite GREENWICH ASSET and NIGERIAN BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENWICH ASSET position performs unexpectedly, NIGERIAN 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 NIGERIAN BREWERIES will offset losses from the drop in NIGERIAN BREWERIES's long position.| GREENWICH ASSET vs. DN TYRE RUBBER | GREENWICH ASSET vs. CHAMPION BREWERIES PLC | GREENWICH ASSET vs. UNION HOMES REAL | GREENWICH ASSET vs. STANDARD ALLIANCE INSURANCE |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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