Correlation Between JULIUS BERGER and NIGERIAN BREWERIES
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By analyzing existing cross correlation between JULIUS BERGER NIGERIA and NIGERIAN BREWERIES PLC, you can compare the effects of market volatilities on JULIUS BERGER 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 JULIUS BERGER with a short position of NIGERIAN BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of JULIUS BERGER and NIGERIAN BREWERIES.
Diversification Opportunities for JULIUS BERGER and NIGERIAN BREWERIES
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JULIUS and NIGERIAN is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding JULIUS BERGER NIGERIA 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 JULIUS BERGER 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 JULIUS BERGER NIGERIA 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 JULIUS BERGER i.e., JULIUS BERGER and NIGERIAN BREWERIES go up and down completely randomly.
Pair Corralation between JULIUS BERGER and NIGERIAN BREWERIES
Assuming the 90 days trading horizon JULIUS BERGER NIGERIA is expected to generate 28.67 times more return on investment than NIGERIAN BREWERIES. However, JULIUS BERGER is 28.67 times more volatile than NIGERIAN BREWERIES PLC. It trades about 0.08 of its potential returns per unit of risk. NIGERIAN BREWERIES PLC is currently generating about -0.01 per unit of risk. If you would invest 2,176 in JULIUS BERGER NIGERIA on September 23, 2024 and sell it today you would earn a total of 13,349 from holding JULIUS BERGER NIGERIA or generate 613.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.2% |
| Values | Daily Returns |
JULIUS BERGER NIGERIA vs. NIGERIAN BREWERIES PLC
Performance |
| Timeline |
| JULIUS BERGER NIGERIA |
| NIGERIAN BREWERIES PLC |
JULIUS BERGER and NIGERIAN BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JULIUS BERGER and NIGERIAN BREWERIES
The main advantage of trading using opposite JULIUS BERGER and NIGERIAN BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JULIUS BERGER 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.| JULIUS BERGER vs. NIGERIAN BREWERIES PLC | JULIUS BERGER vs. UNITY BANK PLC | JULIUS BERGER vs. BUA FOODS PLC | JULIUS BERGER vs. CONSOLIDATED HALLMARK 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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