Correlation Between Nigerian Stock and C I
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By analyzing existing cross correlation between Nigerian Stock Exchange and C I LEASING, you can compare the effects of market volatilities on Nigerian Stock and C I 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 Stock with a short position of C I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nigerian Stock and C I.
Diversification Opportunities for Nigerian Stock and C I
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nigerian and CILEASING is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Nigerian Stock Exchange and C I LEASING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C I LEASING and Nigerian Stock 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 Stock Exchange are associated (or correlated) with C I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C I LEASING has no effect on the direction of Nigerian Stock i.e., Nigerian Stock and C I go up and down completely randomly.
Pair Corralation between Nigerian Stock and C I
Assuming the 90 days trading horizon Nigerian Stock is expected to generate 92.54 times less return on investment than C I. But when comparing it to its historical volatility, Nigerian Stock Exchange is 8.93 times less risky than C I. It trades about 0.01 of its potential returns per unit of risk. C I LEASING is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 371.00 in C I LEASING on September 2, 2024 and sell it today you would earn a total of 28.00 from holding C I LEASING or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nigerian Stock Exchange vs. C I LEASING
Performance |
| Timeline |
Nigerian Stock and C I Volatility Contrast
Predicted Return Density |
| Returns |
Nigerian Stock Exchange
Pair trading matchups for Nigerian Stock
C I LEASING
Pair trading matchups for C I
Pair Trading with Nigerian Stock and C I
The main advantage of trading using opposite Nigerian Stock and C I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nigerian Stock position performs unexpectedly, C I 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 C I will offset losses from the drop in C I's long position.| Nigerian Stock vs. JAIZ BANK PLC | Nigerian Stock vs. CUSTODIAN INVESTMENT PLC | Nigerian Stock vs. INDUSTRIAL MEDICAL GASES | Nigerian Stock vs. UNITED BANK FOR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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