Correlation Between STACO INSURANCE and NESTLE NIGERIA
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By analyzing existing cross correlation between STACO INSURANCE PLC and NESTLE NIGERIA PLC, you can compare the effects of market volatilities on STACO INSURANCE and NESTLE NIGERIA 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 STACO INSURANCE with a short position of NESTLE NIGERIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of STACO INSURANCE and NESTLE NIGERIA.
Diversification Opportunities for STACO INSURANCE and NESTLE NIGERIA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STACO and NESTLE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STACO INSURANCE PLC and NESTLE NIGERIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTLE NIGERIA PLC and STACO INSURANCE 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 STACO INSURANCE PLC are associated (or correlated) with NESTLE NIGERIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTLE NIGERIA PLC has no effect on the direction of STACO INSURANCE i.e., STACO INSURANCE and NESTLE NIGERIA go up and down completely randomly.
Pair Corralation between STACO INSURANCE and NESTLE NIGERIA
If you would invest 87,500 in NESTLE NIGERIA PLC on November 3, 2024 and sell it today you would earn a total of 7,500 from holding NESTLE NIGERIA PLC or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STACO INSURANCE PLC vs. NESTLE NIGERIA PLC
Performance |
| Timeline |
| STACO INSURANCE PLC |
| NESTLE NIGERIA PLC |
STACO INSURANCE and NESTLE NIGERIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STACO INSURANCE and NESTLE NIGERIA
The main advantage of trading using opposite STACO INSURANCE and NESTLE NIGERIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STACO INSURANCE position performs unexpectedly, NESTLE NIGERIA 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 NESTLE NIGERIA will offset losses from the drop in NESTLE NIGERIA's long position.| STACO INSURANCE vs. ZENITH BANK PLC | STACO INSURANCE vs. CUSTODIAN INVESTMENT PLC | STACO INSURANCE vs. ASO SAVINGS AND | STACO INSURANCE vs. FIDELITY BANK PLC |
| NESTLE NIGERIA vs. STACO INSURANCE PLC | NESTLE NIGERIA vs. ABBEY MORTGAGE BANK | NESTLE NIGERIA vs. UNITED BANK FOR | NESTLE NIGERIA vs. CORNERSTONE INSURANCE PLC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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