Correlation Between Bucharest BET-NG and Nigerian Stock
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By analyzing existing cross correlation between Bucharest BET-NG and Nigerian Stock Exchange, you can compare the effects of market volatilities on Bucharest BET-NG 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 Bucharest BET-NG with a short position of Nigerian Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bucharest BET-NG and Nigerian Stock.
Diversification Opportunities for Bucharest BET-NG and Nigerian Stock
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bucharest and Nigerian is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bucharest BET-NG 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 Bucharest BET-NG 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 Bucharest BET-NG 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 Bucharest BET-NG i.e., Bucharest BET-NG and Nigerian Stock go up and down completely randomly.
Pair Corralation between Bucharest BET-NG and Nigerian Stock
Assuming the 90 days trading horizon Bucharest BET-NG is expected to generate 1.28 times more return on investment than Nigerian Stock. However, Bucharest BET-NG is 1.28 times more volatile than Nigerian Stock Exchange. It trades about 0.1 of its potential returns per unit of risk. Nigerian Stock Exchange is currently generating about 0.06 per unit of risk. If you would invest 122,847 in Bucharest BET-NG on January 4, 2025 and sell it today you would earn a total of 3,813 from holding Bucharest BET-NG or generate 3.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 76.19% |
Values | Daily Returns |
Bucharest BET-NG vs. Nigerian Stock Exchange
Performance |
Timeline |
Bucharest BET-NG and Nigerian Stock Volatility Contrast
Predicted Return Density |
Returns |
Bucharest BET-NG
Pair trading matchups for Bucharest BET-NG
Nigerian Stock Exchange
Pair trading matchups for Nigerian Stock
Pair Trading with Bucharest BET-NG and Nigerian Stock
The main advantage of trading using opposite Bucharest BET-NG and Nigerian Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bucharest BET-NG 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.Bucharest BET-NG vs. IHUNT TECHNOLOGY IMPORT EXPORT | Bucharest BET-NG vs. Turism Hotelur | Bucharest BET-NG vs. TRANSILVANIA LEASING SI | Bucharest BET-NG vs. Digi Communications NV |
Nigerian Stock vs. AXAMANSARD INSURANCE PLC | Nigerian Stock vs. DEAP CAPITAL MANAGEMENT | Nigerian Stock vs. ABBEY MORTGAGE BANK | Nigerian Stock vs. AIICO INSURANCE 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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