Correlation Between BUA FOODS and UPDC PLC
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By analyzing existing cross correlation between BUA FOODS PLC and UPDC PLC, you can compare the effects of market volatilities on BUA FOODS and UPDC 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 BUA FOODS with a short position of UPDC PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and UPDC PLC.
Diversification Opportunities for BUA FOODS and UPDC PLC
Very poor diversification
The 3 months correlation between BUA and UPDC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC and UPDC PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPDC PLC and BUA FOODS 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 BUA FOODS PLC are associated (or correlated) with UPDC PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPDC PLC has no effect on the direction of BUA FOODS i.e., BUA FOODS and UPDC PLC go up and down completely randomly.
Pair Corralation between BUA FOODS and UPDC PLC
Assuming the 90 days trading horizon BUA FOODS is expected to generate 2.9 times less return on investment than UPDC PLC. But when comparing it to its historical volatility, BUA FOODS PLC is 2.75 times less risky than UPDC PLC. It trades about 0.24 of its potential returns per unit of risk. UPDC PLC is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 296.00 in UPDC PLC on May 31, 2025 and sell it today you would earn a total of 354.00 from holding UPDC PLC or generate 119.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BUA FOODS PLC vs. UPDC PLC
Performance |
| Timeline |
| BUA FOODS PLC |
| UPDC PLC |
BUA FOODS and UPDC PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and UPDC PLC
The main advantage of trading using opposite BUA FOODS and UPDC PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS position performs unexpectedly, UPDC 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 UPDC PLC will offset losses from the drop in UPDC PLC's long position.| BUA FOODS vs. GUINEA INSURANCE PLC | BUA FOODS vs. ALUMINIUM EXTRUSION IND | BUA FOODS vs. VITAFOAM NIGERIA PLC | BUA FOODS vs. SECURE ELECTRONIC TECHNOLOGY |
| UPDC PLC vs. GUINEA INSURANCE PLC | UPDC PLC vs. ALUMINIUM EXTRUSION IND | UPDC PLC vs. VITAFOAM NIGERIA PLC | UPDC PLC vs. SECURE ELECTRONIC TECHNOLOGY |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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