Correlation Between Nigerian Stock and Stock Exchange
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By analyzing existing cross correlation between Nigerian Stock Exchange and Stock Exchange Of, you can compare the effects of market volatilities on Nigerian Stock and Stock 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 Nigerian Stock with a short position of Stock Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nigerian Stock and Stock Exchange.
Diversification Opportunities for Nigerian Stock and Stock Exchange
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nigerian and Stock is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Nigerian Stock Exchange and Stock Exchange Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Exchange and Nigerian Stock 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 Nigerian Stock Exchange are associated (or correlated) with Stock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Exchange has no effect on the direction of Nigerian Stock i.e., Nigerian Stock and Stock Exchange go up and down completely randomly.
Pair Corralation between Nigerian Stock and Stock Exchange
Assuming the 90 days trading horizon Nigerian Stock Exchange is expected to under-perform the Stock Exchange. But the index apears to be less risky and, when comparing its historical volatility, Nigerian Stock Exchange is 1.93 times less risky than Stock Exchange. The index trades about -0.42 of its potential returns per unit of risk. The Stock Exchange Of is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 137,389 in Stock Exchange Of on February 4, 2024 and sell it today you would lose (397.00) from holding Stock Exchange Of or give up 0.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 94.74% |
Values | Daily Returns |
Nigerian Stock Exchange vs. Stock Exchange Of
Performance |
Timeline |
Nigerian Stock and Stock Exchange Volatility Contrast
Predicted Return Density |
Returns |
Nigerian Stock Exchange
Pair trading matchups for Nigerian Stock
Stock Exchange Of
Pair trading matchups for Stock Exchange
Pair Trading with Nigerian Stock and Stock Exchange
The main advantage of trading using opposite Nigerian Stock and Stock Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nigerian Stock position performs unexpectedly, Stock 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 Stock Exchange will offset losses from the drop in Stock Exchange's long position.Nigerian Stock vs. SECURE ELECTRONIC TECHNOLOGY | Nigerian Stock vs. NOTORE CHEMICAL IND | Nigerian Stock vs. RESORT SAVINGS LOANS | Nigerian Stock vs. AFROMEDIA PLC |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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