Correlation Between NIGERIAN BREWERIES and AFROMEDIA PLC
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By analyzing existing cross correlation between NIGERIAN BREWERIES PLC and AFROMEDIA PLC, you can compare the effects of market volatilities on NIGERIAN BREWERIES and AFROMEDIA PLC 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 NIGERIAN BREWERIES with a short position of AFROMEDIA PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIGERIAN BREWERIES and AFROMEDIA PLC.
Diversification Opportunities for NIGERIAN BREWERIES and AFROMEDIA PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIGERIAN and AFROMEDIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NIGERIAN BREWERIES PLC and AFROMEDIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFROMEDIA PLC and NIGERIAN 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 NIGERIAN BREWERIES PLC are associated (or correlated) with AFROMEDIA PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFROMEDIA PLC has no effect on the direction of NIGERIAN BREWERIES i.e., NIGERIAN BREWERIES and AFROMEDIA PLC go up and down completely randomly.
Pair Corralation between NIGERIAN BREWERIES and AFROMEDIA PLC
Assuming the 90 days trading horizon NIGERIAN BREWERIES PLC is expected to under-perform the AFROMEDIA PLC. In addition to that, NIGERIAN BREWERIES is 2.42 times more volatile than AFROMEDIA PLC. It trades about -0.01 of its total potential returns per unit of risk. AFROMEDIA PLC is currently generating about 0.05 per unit of volatility. If you would invest 20.00 in AFROMEDIA PLC on September 3, 2024 and sell it today you would earn a total of 4.00 from holding AFROMEDIA PLC or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 80.29% |
| Values | Daily Returns |
NIGERIAN BREWERIES PLC vs. AFROMEDIA PLC
Performance |
| Timeline |
| NIGERIAN BREWERIES PLC |
| AFROMEDIA PLC |
NIGERIAN BREWERIES and AFROMEDIA PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIGERIAN BREWERIES and AFROMEDIA PLC
The main advantage of trading using opposite NIGERIAN BREWERIES and AFROMEDIA PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIGERIAN BREWERIES position performs unexpectedly, AFROMEDIA PLC 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 AFROMEDIA PLC will offset losses from the drop in AFROMEDIA PLC's long position.| NIGERIAN BREWERIES vs. AIICO INSURANCE PLC | NIGERIAN BREWERIES vs. STANDARD ALLIANCE INSURANCE | NIGERIAN BREWERIES vs. CUSTODIAN INVESTMENT PLC | NIGERIAN BREWERIES vs. CORNERSTONE INSURANCE PLC |
| AFROMEDIA PLC vs. UNITY BANK PLC | AFROMEDIA PLC vs. FIDSON HEALTHCARE PLC | AFROMEDIA PLC vs. NIGERIAN BREWERIES PLC | AFROMEDIA PLC vs. STANDARD ALLIANCE INSURANCE |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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