Correlation Between AMS Small and Nigerian Stock
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By analyzing existing cross correlation between AMS Small Cap and Nigerian Stock Exchange, you can compare the effects of market volatilities on AMS Small and Nigerian Stock 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 AMS Small with a short position of Nigerian Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMS Small and Nigerian Stock.
Diversification Opportunities for AMS Small and Nigerian Stock
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMS and Nigerian is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding AMS Small Cap and Nigerian Stock Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nigerian Stock Exchange and AMS Small 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 AMS Small Cap are associated (or correlated) with Nigerian Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nigerian Stock Exchange has no effect on the direction of AMS Small i.e., AMS Small and Nigerian Stock go up and down completely randomly.
Pair Corralation between AMS Small and Nigerian Stock
Assuming the 90 days trading horizon AMS Small Cap is expected to under-perform the Nigerian Stock. In addition to that, AMS Small is 1.67 times more volatile than Nigerian Stock Exchange. It trades about -0.36 of its total potential returns per unit of risk. Nigerian Stock Exchange is currently generating about -0.42 per unit of volatility. If you would invest 10,373,600 in Nigerian Stock Exchange on February 4, 2024 and sell it today you would lose (414,875) from holding Nigerian Stock Exchange or give up 4.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 90.48% |
Values | Daily Returns |
AMS Small Cap vs. Nigerian Stock Exchange
Performance |
Timeline |
AMS Small and Nigerian Stock Volatility Contrast
Predicted Return Density |
Returns |
AMS Small Cap
Pair trading matchups for AMS Small
Nigerian Stock Exchange
Pair trading matchups for Nigerian Stock
Pair Trading with AMS Small and Nigerian Stock
The main advantage of trading using opposite AMS Small and Nigerian Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMS Small position performs unexpectedly, Nigerian Stock 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 Stock will offset losses from the drop in Nigerian Stock's long position.AMS Small vs. AMG Advanced Metallurgical | AMS Small vs. Reinet Investments SCA | AMS Small vs. Accsys Technologies | AMS Small vs. Flow Traders BV |
Nigerian Stock vs. SECURE ELECTRONIC TECHNOLOGY | Nigerian Stock vs. NOTORE CHEMICAL IND | Nigerian Stock vs. RESORT SAVINGS LOANS | Nigerian Stock vs. AFROMEDIA 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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