Correlation Between NPF MICRO and AFROMEDIA PLC
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By analyzing existing cross correlation between NPF MICRO FINANCE and AFROMEDIA PLC, you can compare the effects of market volatilities on NPF MICRO 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 NPF MICRO with a short position of AFROMEDIA PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of NPF MICRO and AFROMEDIA PLC.
Diversification Opportunities for NPF MICRO and AFROMEDIA PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NPF and AFROMEDIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NPF MICRO FINANCE and AFROMEDIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFROMEDIA PLC and NPF MICRO 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 NPF MICRO FINANCE 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 NPF MICRO i.e., NPF MICRO and AFROMEDIA PLC go up and down completely randomly.
Pair Corralation between NPF MICRO and AFROMEDIA PLC
Assuming the 90 days trading horizon NPF MICRO is expected to generate 1.88 times less return on investment than AFROMEDIA PLC. In addition to that, NPF MICRO is 2.58 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 2, 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 | 80.12% |
| Values | Daily Returns |
NPF MICRO FINANCE vs. AFROMEDIA PLC
Performance |
| Timeline |
| NPF MICRO FINANCE |
| AFROMEDIA PLC |
NPF MICRO and AFROMEDIA PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NPF MICRO and AFROMEDIA PLC
The main advantage of trading using opposite NPF MICRO and AFROMEDIA PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NPF MICRO 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.| NPF MICRO vs. CORONATION INSURANCE PLC | NPF MICRO vs. JAIZ BANK PLC | NPF MICRO vs. CORNERSTONE INSURANCE PLC | NPF MICRO vs. AIICO INSURANCE PLC |
| AFROMEDIA PLC vs. VFD GROUP | AFROMEDIA PLC vs. DEAP CAPITAL MANAGEMENT | AFROMEDIA PLC vs. VETIVA INDUSTRIAL ETF |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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