Correlation Between TOTALENERGIES MARKETING and GOLDEN GUINEA
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By analyzing existing cross correlation between TOTALENERGIES MARKETING NIGERIA and GOLDEN GUINEA BREWERIES, you can compare the effects of market volatilities on TOTALENERGIES MARKETING and GOLDEN GUINEA 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 TOTALENERGIES MARKETING with a short position of GOLDEN GUINEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTALENERGIES MARKETING and GOLDEN GUINEA.
Diversification Opportunities for TOTALENERGIES MARKETING and GOLDEN GUINEA
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TOTALENERGIES and GOLDEN is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding TOTALENERGIES MARKETING NIGERI and GOLDEN GUINEA BREWERIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDEN GUINEA BREWERIES and TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING NIGERIA are associated (or correlated) with GOLDEN GUINEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDEN GUINEA BREWERIES has no effect on the direction of TOTALENERGIES MARKETING i.e., TOTALENERGIES MARKETING and GOLDEN GUINEA go up and down completely randomly.
Pair Corralation between TOTALENERGIES MARKETING and GOLDEN GUINEA
Assuming the 90 days trading horizon TOTALENERGIES MARKETING is expected to generate 1.57 times less return on investment than GOLDEN GUINEA. But when comparing it to its historical volatility, TOTALENERGIES MARKETING NIGERIA is 1.17 times less risky than GOLDEN GUINEA. It trades about 0.16 of its potential returns per unit of risk. GOLDEN GUINEA BREWERIES is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 89.00 in GOLDEN GUINEA BREWERIES on August 31, 2024 and sell it today you would earn a total of 281.00 from holding GOLDEN GUINEA BREWERIES or generate 315.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.73% |
| Values | Daily Returns |
TOTALENERGIES MARKETING NIGERI vs. GOLDEN GUINEA BREWERIES
Performance |
| Timeline |
| TOTALENERGIES MARKETING |
| GOLDEN GUINEA BREWERIES |
TOTALENERGIES MARKETING and GOLDEN GUINEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOTALENERGIES MARKETING and GOLDEN GUINEA
The main advantage of trading using opposite TOTALENERGIES MARKETING and GOLDEN GUINEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTALENERGIES MARKETING position performs unexpectedly, GOLDEN GUINEA 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 GOLDEN GUINEA will offset losses from the drop in GOLDEN GUINEA's long position.| TOTALENERGIES MARKETING vs. SECURE ELECTRONIC TECHNOLOGY | TOTALENERGIES MARKETING vs. VFD GROUP | TOTALENERGIES MARKETING vs. AFROMEDIA PLC | TOTALENERGIES MARKETING vs. DEAP CAPITAL MANAGEMENT |
| GOLDEN GUINEA vs. ZENITH BANK PLC | GOLDEN GUINEA vs. NEM INSURANCE PLC | GOLDEN GUINEA vs. AIICO INSURANCE PLC | GOLDEN GUINEA vs. UNITY BANK 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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