Correlation Between Nigerian Stock and VETIVA S
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By analyzing existing cross correlation between Nigerian Stock Exchange and VETIVA S P, you can compare the effects of market volatilities on Nigerian Stock and VETIVA S 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 VETIVA S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nigerian Stock and VETIVA S.
Diversification Opportunities for Nigerian Stock and VETIVA S
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nigerian and VETIVA is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nigerian Stock Exchange and VETIVA S P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VETIVA S P 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 VETIVA S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VETIVA S P has no effect on the direction of Nigerian Stock i.e., Nigerian Stock and VETIVA S go up and down completely randomly.
Pair Corralation between Nigerian Stock and VETIVA S
Assuming the 90 days trading horizon Nigerian Stock is expected to generate 322.65 times less return on investment than VETIVA S. But when comparing it to its historical volatility, Nigerian Stock Exchange is 376.99 times less risky than VETIVA S. It trades about 0.14 of its potential returns per unit of risk. VETIVA S P is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 310,000 in VETIVA S P on September 5, 2024 and sell it today you would lose (289,300) from holding VETIVA S P or give up 93.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nigerian Stock Exchange vs. VETIVA S P
Performance |
| Timeline |
Nigerian Stock and VETIVA S Volatility Contrast
Predicted Return Density |
| Returns |
Nigerian Stock Exchange
Pair trading matchups for Nigerian Stock
VETIVA S P
Pair trading matchups for VETIVA S
Pair Trading with Nigerian Stock and VETIVA S
The main advantage of trading using opposite Nigerian Stock and VETIVA S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nigerian Stock position performs unexpectedly, VETIVA S 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 VETIVA S will offset losses from the drop in VETIVA S's long position.| Nigerian Stock vs. MULTI TREX INTEGRATED FOODS | Nigerian Stock vs. AFROMEDIA PLC | Nigerian Stock vs. UNION HOMES SAVINGS | Nigerian Stock vs. IKEJA HOTELS PLC |
| VETIVA S vs. GUINEA INSURANCE PLC | VETIVA S vs. SECURE ELECTRONIC TECHNOLOGY | VETIVA S vs. AIRTEL AFRICA PLC | VETIVA S vs. VFD GROUP |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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