Correlation Between NATIONAL BREWERIES and PUMA ENERGY
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By analyzing existing cross correlation between NATIONAL BREWERIES PLC and PUMA ENERGY ZAMBIA, you can compare the effects of market volatilities on NATIONAL BREWERIES and PUMA ENERGY 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 NATIONAL BREWERIES with a short position of PUMA ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of NATIONAL BREWERIES and PUMA ENERGY.
Diversification Opportunities for NATIONAL BREWERIES and PUMA ENERGY
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NATIONAL and PUMA is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding NATIONAL BREWERIES PLC and PUMA ENERGY ZAMBIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA ENERGY ZAMBIA and NATIONAL 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 NATIONAL BREWERIES PLC are associated (or correlated) with PUMA ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA ENERGY ZAMBIA has no effect on the direction of NATIONAL BREWERIES i.e., NATIONAL BREWERIES and PUMA ENERGY go up and down completely randomly.
Pair Corralation between NATIONAL BREWERIES and PUMA ENERGY
Assuming the 90 days trading horizon NATIONAL BREWERIES PLC is expected to under-perform the PUMA ENERGY. In addition to that, NATIONAL BREWERIES is 23.26 times more volatile than PUMA ENERGY ZAMBIA. It trades about -0.21 of its total potential returns per unit of risk. PUMA ENERGY ZAMBIA is currently generating about 0.2 per unit of volatility. If you would invest 575.00 in PUMA ENERGY ZAMBIA on September 1, 2024 and sell it today you would earn a total of 5.00 from holding PUMA ENERGY ZAMBIA or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NATIONAL BREWERIES PLC vs. PUMA ENERGY ZAMBIA
Performance |
| Timeline |
| NATIONAL BREWERIES PLC |
| PUMA ENERGY ZAMBIA |
NATIONAL BREWERIES and PUMA ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NATIONAL BREWERIES and PUMA ENERGY
The main advantage of trading using opposite NATIONAL BREWERIES and PUMA ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NATIONAL BREWERIES position performs unexpectedly, PUMA ENERGY 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 PUMA ENERGY will offset losses from the drop in PUMA ENERGY's long position.| NATIONAL BREWERIES vs. STANDARD CHARTERED BANK | NATIONAL BREWERIES vs. AECI MINING EXPLOSIVES | NATIONAL BREWERIES vs. ZAMBIA SUGAR PLC | NATIONAL BREWERIES vs. BRITISH AMERICAN TOBACCO ZAMBIA |
| PUMA ENERGY vs. AECI MINING EXPLOSIVES | PUMA ENERGY vs. TAJ PAMODZI HOTELS | PUMA ENERGY vs. NATIONAL BREWERIES PLC | PUMA ENERGY vs. METAL FABRICATORS OF |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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