Correlation Between JAIZ BANK and NESTLE NIGERIA
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By analyzing existing cross correlation between JAIZ BANK PLC and NESTLE NIGERIA PLC, you can compare the effects of market volatilities on JAIZ BANK and NESTLE NIGERIA 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 JAIZ BANK with a short position of NESTLE NIGERIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAIZ BANK and NESTLE NIGERIA.
Diversification Opportunities for JAIZ BANK and NESTLE NIGERIA
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JAIZ and NESTLE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding JAIZ BANK PLC and NESTLE NIGERIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTLE NIGERIA PLC and JAIZ BANK 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 JAIZ BANK PLC are associated (or correlated) with NESTLE NIGERIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTLE NIGERIA PLC has no effect on the direction of JAIZ BANK i.e., JAIZ BANK and NESTLE NIGERIA go up and down completely randomly.
Pair Corralation between JAIZ BANK and NESTLE NIGERIA
If you would invest 295.00 in JAIZ BANK PLC on October 24, 2024 and sell it today you would earn a total of 5.00 from holding JAIZ BANK PLC or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAIZ BANK PLC vs. NESTLE NIGERIA PLC
Performance |
| Timeline |
| JAIZ BANK PLC |
| NESTLE NIGERIA PLC |
JAIZ BANK and NESTLE NIGERIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAIZ BANK and NESTLE NIGERIA
The main advantage of trading using opposite JAIZ BANK and NESTLE NIGERIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAIZ BANK position performs unexpectedly, NESTLE NIGERIA 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 NESTLE NIGERIA will offset losses from the drop in NESTLE NIGERIA's long position.| JAIZ BANK vs. FIDELITY BANK PLC | JAIZ BANK vs. CORNERSTONE INSURANCE PLC | JAIZ BANK vs. UNITY BANK PLC | JAIZ BANK vs. DN TYRE RUBBER |
| NESTLE NIGERIA vs. AIICO INSURANCE PLC | NESTLE NIGERIA vs. STACO INSURANCE PLC | NESTLE NIGERIA vs. JAIZ BANK PLC | NESTLE NIGERIA vs. LIVINGTRUST MORTGAGE BANK |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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