Correlation Between Visa and NIGERIAN EXCHANGE
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By analyzing existing cross correlation between Visa Class A and NIGERIAN EXCHANGE GROUP, you can compare the effects of market volatilities on Visa 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 Visa with a short position of NIGERIAN EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and NIGERIAN EXCHANGE.
Diversification Opportunities for Visa and NIGERIAN EXCHANGE
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Visa and NIGERIAN is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and NIGERIAN EXCHANGE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGERIAN EXCHANGE and Visa 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 Visa Class A 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 Visa i.e., Visa and NIGERIAN EXCHANGE go up and down completely randomly.
Pair Corralation between Visa and NIGERIAN EXCHANGE
Taking into account the 90-day investment horizon Visa is expected to generate 1.25 times less return on investment than NIGERIAN EXCHANGE. But when comparing it to its historical volatility, Visa Class A is 2.88 times less risky than NIGERIAN EXCHANGE. It trades about 0.09 of its potential returns per unit of risk. NIGERIAN EXCHANGE GROUP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,103 in NIGERIAN EXCHANGE GROUP on September 3, 2024 and sell it today you would earn a total of 407.00 from holding NIGERIAN EXCHANGE GROUP or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.38% |
| Values | Daily Returns |
Visa Class A vs. NIGERIAN EXCHANGE GROUP
Performance |
| Timeline |
| Visa Class A |
| NIGERIAN EXCHANGE |
Visa and NIGERIAN EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and NIGERIAN EXCHANGE
The main advantage of trading using opposite Visa and NIGERIAN EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| NIGERIAN EXCHANGE vs. GUINEA INSURANCE PLC | NIGERIAN EXCHANGE vs. SECURE ELECTRONIC TECHNOLOGY | NIGERIAN EXCHANGE vs. AIRTEL AFRICA PLC | NIGERIAN EXCHANGE 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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