Correlation Between INTERNATIONAL BREWERIES and JAPAUL OIL
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By analyzing existing cross correlation between INTERNATIONAL BREWERIES PLC and JAPAUL OIL MARITIME, you can compare the effects of market volatilities on INTERNATIONAL BREWERIES and JAPAUL OIL 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 INTERNATIONAL BREWERIES with a short position of JAPAUL OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL BREWERIES and JAPAUL OIL.
Diversification Opportunities for INTERNATIONAL BREWERIES and JAPAUL OIL
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERNATIONAL and JAPAUL is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL BREWERIES PLC and JAPAUL OIL MARITIME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAUL OIL MARITIME and INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES PLC are associated (or correlated) with JAPAUL OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAUL OIL MARITIME has no effect on the direction of INTERNATIONAL BREWERIES i.e., INTERNATIONAL BREWERIES and JAPAUL OIL go up and down completely randomly.
Pair Corralation between INTERNATIONAL BREWERIES and JAPAUL OIL
Assuming the 90 days trading horizon INTERNATIONAL BREWERIES is expected to generate 1.76 times less return on investment than JAPAUL OIL. But when comparing it to its historical volatility, INTERNATIONAL BREWERIES PLC is 1.73 times less risky than JAPAUL OIL. It trades about 0.2 of its potential returns per unit of risk. JAPAUL OIL MARITIME is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 226.00 in JAPAUL OIL MARITIME on May 1, 2025 and sell it today you would earn a total of 64.00 from holding JAPAUL OIL MARITIME or generate 28.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL BREWERIES PLC vs. JAPAUL OIL MARITIME
Performance |
| Timeline |
| INTERNATIONAL BREWERIES |
| JAPAUL OIL MARITIME |
INTERNATIONAL BREWERIES and JAPAUL OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL BREWERIES and JAPAUL OIL
The main advantage of trading using opposite INTERNATIONAL BREWERIES and JAPAUL OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL BREWERIES position performs unexpectedly, JAPAUL OIL 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 JAPAUL OIL will offset losses from the drop in JAPAUL OIL's long position.| INTERNATIONAL BREWERIES vs. FORTIS GLOBAL INSURANCE | INTERNATIONAL BREWERIES vs. BUA FOODS PLC | INTERNATIONAL BREWERIES vs. FIDSON HEALTHCARE PLC | INTERNATIONAL BREWERIES vs. UNIVERSAL INSURANCE PANY |
| JAPAUL OIL vs. TOTALENERGIES MARKETING NIGERIA | JAPAUL OIL vs. UNIVERSAL INSURANCE PANY | JAPAUL OIL vs. ABBEY MORTGAGE BANK | JAPAUL OIL 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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