Correlation Between INTERNATIONAL BREWERIES and C I
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By analyzing existing cross correlation between INTERNATIONAL BREWERIES PLC and C I LEASING, you can compare the effects of market volatilities on INTERNATIONAL BREWERIES and C I 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 C I. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL BREWERIES and C I.
Diversification Opportunities for INTERNATIONAL BREWERIES and C I
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between INTERNATIONAL and CILEASING is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL BREWERIES PLC and C I LEASING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C I LEASING 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 C I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C I LEASING has no effect on the direction of INTERNATIONAL BREWERIES i.e., INTERNATIONAL BREWERIES and C I go up and down completely randomly.
Pair Corralation between INTERNATIONAL BREWERIES and C I
Assuming the 90 days trading horizon INTERNATIONAL BREWERIES is expected to generate 77.3 times less return on investment than C I. But when comparing it to its historical volatility, INTERNATIONAL BREWERIES PLC is 3.46 times less risky than C I. It trades about 0.0 of its potential returns per unit of risk. C I LEASING is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 384.00 in C I LEASING on September 14, 2024 and sell it today you would earn a total of 21.00 from holding C I LEASING or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL BREWERIES PLC vs. C I LEASING
Performance |
| Timeline |
| INTERNATIONAL BREWERIES |
| C I LEASING |
INTERNATIONAL BREWERIES and C I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL BREWERIES and C I
The main advantage of trading using opposite INTERNATIONAL BREWERIES and C I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL BREWERIES position performs unexpectedly, C I 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 C I will offset losses from the drop in C I'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 |
| C I vs. GUINEA INSURANCE PLC | C I vs. SECURE ELECTRONIC TECHNOLOGY | C I vs. VFD GROUP | C I 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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