Correlation Between NIGERIAN BREWERIES and SECURE ELECTRONIC
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By analyzing existing cross correlation between NIGERIAN BREWERIES PLC and SECURE ELECTRONIC TECHNOLOGY, you can compare the effects of market volatilities on NIGERIAN BREWERIES and SECURE ELECTRONIC 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 SECURE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIGERIAN BREWERIES and SECURE ELECTRONIC.
Diversification Opportunities for NIGERIAN BREWERIES and SECURE ELECTRONIC
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NIGERIAN and SECURE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding NIGERIAN BREWERIES PLC and SECURE ELECTRONIC TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURE ELECTRONIC 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 SECURE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURE ELECTRONIC has no effect on the direction of NIGERIAN BREWERIES i.e., NIGERIAN BREWERIES and SECURE ELECTRONIC go up and down completely randomly.
Pair Corralation between NIGERIAN BREWERIES and SECURE ELECTRONIC
Assuming the 90 days trading horizon NIGERIAN BREWERIES PLC is expected to generate 0.29 times more return on investment than SECURE ELECTRONIC. However, NIGERIAN BREWERIES PLC is 3.48 times less risky than SECURE ELECTRONIC. It trades about 0.26 of its potential returns per unit of risk. SECURE ELECTRONIC TECHNOLOGY is currently generating about -0.01 per unit of risk. If you would invest 3,215 in NIGERIAN BREWERIES PLC on November 4, 2024 and sell it today you would earn a total of 365.00 from holding NIGERIAN BREWERIES PLC or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIGERIAN BREWERIES PLC vs. SECURE ELECTRONIC TECHNOLOGY
Performance |
| Timeline |
| NIGERIAN BREWERIES PLC |
| SECURE ELECTRONIC |
NIGERIAN BREWERIES and SECURE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIGERIAN BREWERIES and SECURE ELECTRONIC
The main advantage of trading using opposite NIGERIAN BREWERIES and SECURE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIGERIAN BREWERIES position performs unexpectedly, SECURE ELECTRONIC 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 SECURE ELECTRONIC will offset losses from the drop in SECURE ELECTRONIC's long position.| NIGERIAN BREWERIES vs. GUINEA INSURANCE PLC | NIGERIAN BREWERIES vs. SECURE ELECTRONIC TECHNOLOGY | NIGERIAN BREWERIES vs. VFD GROUP | NIGERIAN BREWERIES vs. IKEJA HOTELS PLC |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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