Correlation Between INTERNATIONAL BREWERIES and BUA FOODS
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By analyzing existing cross correlation between INTERNATIONAL BREWERIES PLC and BUA FOODS PLC, you can compare the effects of market volatilities on INTERNATIONAL BREWERIES and BUA FOODS 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 INTERNATIONAL BREWERIES with a short position of BUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL BREWERIES and BUA FOODS.
Diversification Opportunities for INTERNATIONAL BREWERIES and BUA FOODS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTERNATIONAL and BUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL BREWERIES PLC and BUA FOODS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BUA FOODS PLC and INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES PLC are associated (or correlated) with BUA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BUA FOODS PLC has no effect on the direction of INTERNATIONAL BREWERIES i.e., INTERNATIONAL BREWERIES and BUA FOODS go up and down completely randomly.
Pair Corralation between INTERNATIONAL BREWERIES and BUA FOODS
Assuming the 90 days trading horizon INTERNATIONAL BREWERIES is expected to generate 2.41 times less return on investment than BUA FOODS. In addition to that, INTERNATIONAL BREWERIES is 3.22 times more volatile than BUA FOODS PLC. It trades about 0.03 of its total potential returns per unit of risk. BUA FOODS PLC is currently generating about 0.2 per unit of volatility. If you would invest 20,280 in BUA FOODS PLC on September 14, 2024 and sell it today you would earn a total of 19,210 from holding BUA FOODS PLC or generate 94.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL BREWERIES PLC vs. BUA FOODS PLC
Performance |
| Timeline |
| INTERNATIONAL BREWERIES |
| BUA FOODS PLC |
INTERNATIONAL BREWERIES and BUA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL BREWERIES and BUA FOODS
The main advantage of trading using opposite INTERNATIONAL BREWERIES and BUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL BREWERIES position performs unexpectedly, BUA FOODS 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 BUA FOODS will offset losses from the drop in BUA FOODS's long position.| INTERNATIONAL BREWERIES vs. GUINEA INSURANCE PLC | INTERNATIONAL BREWERIES vs. SECURE ELECTRONIC TECHNOLOGY | INTERNATIONAL BREWERIES vs. VFD GROUP | INTERNATIONAL BREWERIES vs. IKEJA HOTELS PLC |
| BUA FOODS vs. GUINEA INSURANCE PLC | BUA FOODS vs. SECURE ELECTRONIC TECHNOLOGY | BUA FOODS vs. VFD GROUP | BUA FOODS 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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