Correlation Between SECURE ELECTRONIC and NIGERIAN EXCHANGE
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By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and NIGERIAN EXCHANGE GROUP, you can compare the effects of market volatilities on SECURE ELECTRONIC and NIGERIAN EXCHANGE 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 SECURE ELECTRONIC with a short position of NIGERIAN EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and NIGERIAN EXCHANGE.
Diversification Opportunities for SECURE ELECTRONIC and NIGERIAN EXCHANGE
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SECURE and NIGERIAN is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY and NIGERIAN EXCHANGE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGERIAN EXCHANGE and SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY are associated (or correlated) with NIGERIAN EXCHANGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGERIAN EXCHANGE has no effect on the direction of SECURE ELECTRONIC i.e., SECURE ELECTRONIC and NIGERIAN EXCHANGE go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and NIGERIAN EXCHANGE
Assuming the 90 days trading horizon SECURE ELECTRONIC TECHNOLOGY is expected to generate 1.63 times more return on investment than NIGERIAN EXCHANGE. However, SECURE ELECTRONIC is 1.63 times more volatile than NIGERIAN EXCHANGE GROUP. It trades about 0.07 of its potential returns per unit of risk. NIGERIAN EXCHANGE GROUP is currently generating about 0.02 per unit of risk. If you would invest 22.00 in SECURE ELECTRONIC TECHNOLOGY on September 2, 2024 and sell it today you would earn a total of 33.00 from holding SECURE ELECTRONIC TECHNOLOGY or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.84% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. NIGERIAN EXCHANGE GROUP
Performance |
| Timeline |
| SECURE ELECTRONIC |
| NIGERIAN EXCHANGE |
SECURE ELECTRONIC and NIGERIAN EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and NIGERIAN EXCHANGE
The main advantage of trading using opposite SECURE ELECTRONIC and NIGERIAN EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC position performs unexpectedly, NIGERIAN EXCHANGE 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 NIGERIAN EXCHANGE will offset losses from the drop in NIGERIAN EXCHANGE's long position.| SECURE ELECTRONIC vs. VFD GROUP | SECURE ELECTRONIC vs. DEAP CAPITAL MANAGEMENT | SECURE ELECTRONIC vs. VETIVA INDUSTRIAL ETF |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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