Correlation Between Nigerian Stock and GUINEA INSURANCE
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By analyzing existing cross correlation between Nigerian Stock Exchange and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on Nigerian Stock and GUINEA INSURANCE 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 GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nigerian Stock and GUINEA INSURANCE.
Diversification Opportunities for Nigerian Stock and GUINEA INSURANCE
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nigerian and GUINEA is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nigerian Stock Exchange and GUINEA INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUINEA INSURANCE PLC 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 GUINEA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUINEA INSURANCE PLC has no effect on the direction of Nigerian Stock i.e., Nigerian Stock and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between Nigerian Stock and GUINEA INSURANCE
Assuming the 90 days trading horizon Nigerian Stock Exchange is expected to under-perform the GUINEA INSURANCE. But the index apears to be less risky and, when comparing its historical volatility, Nigerian Stock Exchange is 16.29 times less risky than GUINEA INSURANCE. The index trades about -0.17 of its potential returns per unit of risk. The GUINEA INSURANCE PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 49.00 in GUINEA INSURANCE PLC on August 28, 2024 and sell it today you would earn a total of 1.00 from holding GUINEA INSURANCE PLC or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nigerian Stock Exchange vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
Nigerian Stock and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Nigerian Stock Exchange
Pair trading matchups for Nigerian Stock
GUINEA INSURANCE PLC
Pair trading matchups for GUINEA INSURANCE
Pair Trading with Nigerian Stock and GUINEA INSURANCE
The main advantage of trading using opposite Nigerian Stock and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nigerian Stock position performs unexpectedly, GUINEA INSURANCE 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 GUINEA INSURANCE will offset losses from the drop in GUINEA INSURANCE's long position.| Nigerian Stock vs. UNION HOMES REAL | Nigerian Stock vs. JAIZ BANK PLC | Nigerian Stock vs. C I LEASING | Nigerian Stock vs. STACO INSURANCE PLC |
| GUINEA INSURANCE vs. MULTIVERSE MINING AND | GUINEA INSURANCE vs. NOTORE CHEMICAL IND | GUINEA INSURANCE vs. BUA FOODS PLC | GUINEA INSURANCE vs. INDUSTRIAL MEDICAL GASES |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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