Correlation Between FIDELITY BANK and BUA FOODS
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By analyzing existing cross correlation between FIDELITY BANK PLC and BUA FOODS PLC, you can compare the effects of market volatilities on FIDELITY BANK and BUA FOODS 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 FIDELITY BANK with a short position of BUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDELITY BANK and BUA FOODS.
Diversification Opportunities for FIDELITY BANK and BUA FOODS
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIDELITY and BUA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY BANK PLC and BUA FOODS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BUA FOODS PLC and FIDELITY BANK 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 FIDELITY BANK PLC are associated (or correlated) with BUA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BUA FOODS PLC has no effect on the direction of FIDELITY BANK i.e., FIDELITY BANK and BUA FOODS go up and down completely randomly.
Pair Corralation between FIDELITY BANK and BUA FOODS
Assuming the 90 days trading horizon FIDELITY BANK is expected to generate 2.1 times less return on investment than BUA FOODS. But when comparing it to its historical volatility, FIDELITY BANK PLC is 1.18 times less risky than BUA FOODS. It trades about 0.13 of its potential returns per unit of risk. BUA FOODS PLC is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 44,000 in BUA FOODS PLC on May 28, 2025 and sell it today you would earn a total of 15,000 from holding BUA FOODS PLC or generate 34.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
FIDELITY BANK PLC vs. BUA FOODS PLC
Performance |
| Timeline |
| FIDELITY BANK PLC |
| BUA FOODS PLC |
FIDELITY BANK and BUA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDELITY BANK and BUA FOODS
The main advantage of trading using opposite FIDELITY BANK and BUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDELITY BANK position performs unexpectedly, BUA FOODS 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 BUA FOODS will offset losses from the drop in BUA FOODS's long position.| FIDELITY BANK vs. STERLING FINANCIAL HOLDINGS | FIDELITY BANK vs. ASO SAVINGS AND | FIDELITY BANK vs. FORTIS GLOBAL INSURANCE | FIDELITY BANK vs. NIGERIAN BREWERIES PLC |
| BUA FOODS vs. STACO INSURANCE PLC | BUA FOODS vs. NEM INSURANCE PLC | BUA FOODS vs. UNITY BANK PLC | BUA FOODS vs. DN TYRE RUBBER |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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