Correlation Between VFD GROUP and CAP PLC
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By analyzing existing cross correlation between VFD GROUP and CAP PLC, you can compare the effects of market volatilities on VFD GROUP and CAP 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 VFD GROUP with a short position of CAP PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of VFD GROUP and CAP PLC.
Diversification Opportunities for VFD GROUP and CAP PLC
Excellent diversification
The 3 months correlation between VFD and CAP is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding VFD GROUP and CAP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAP PLC and VFD GROUP 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 VFD GROUP are associated (or correlated) with CAP PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAP PLC has no effect on the direction of VFD GROUP i.e., VFD GROUP and CAP PLC go up and down completely randomly.
Pair Corralation between VFD GROUP and CAP PLC
Assuming the 90 days trading horizon VFD GROUP is expected to under-perform the CAP PLC. In addition to that, VFD GROUP is 2.79 times more volatile than CAP PLC. It trades about -0.05 of its total potential returns per unit of risk. CAP PLC is currently generating about 0.16 per unit of volatility. If you would invest 1,911 in CAP PLC on September 4, 2024 and sell it today you would earn a total of 1,839 from holding CAP PLC or generate 96.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VFD GROUP vs. CAP PLC
Performance |
| Timeline |
| VFD GROUP |
| CAP PLC |
VFD GROUP and CAP PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VFD GROUP and CAP PLC
The main advantage of trading using opposite VFD GROUP and CAP PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VFD GROUP position performs unexpectedly, CAP 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 CAP PLC will offset losses from the drop in CAP PLC's long position.| VFD GROUP vs. CONSOLIDATED HALLMARK INSURANCE | VFD GROUP vs. STERLING FINANCIAL HOLDINGS | VFD GROUP vs. TOTALENERGIES MARKETING NIGERIA | VFD GROUP vs. UNITED BANK FOR |
| CAP PLC vs. STANDARD ALLIANCE INSURANCE | CAP PLC vs. DN TYRE RUBBER | CAP PLC vs. GOLDEN GUINEA BREWERIES | CAP PLC vs. BUA FOODS 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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