Correlation Between INTERNATIONAL BREWERIES and NORTHERN NIGERIA
Specify exactly 2 symbols:
By analyzing existing cross correlation between INTERNATIONAL BREWERIES PLC and NORTHERN NIGERIA FLOUR, you can compare the effects of market volatilities on INTERNATIONAL BREWERIES and NORTHERN NIGERIA 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 NORTHERN NIGERIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL BREWERIES and NORTHERN NIGERIA.
Diversification Opportunities for INTERNATIONAL BREWERIES and NORTHERN NIGERIA
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERNATIONAL and NORTHERN is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL BREWERIES PLC and NORTHERN NIGERIA FLOUR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORTHERN NIGERIA FLOUR 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 NORTHERN NIGERIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORTHERN NIGERIA FLOUR has no effect on the direction of INTERNATIONAL BREWERIES i.e., INTERNATIONAL BREWERIES and NORTHERN NIGERIA go up and down completely randomly.
Pair Corralation between INTERNATIONAL BREWERIES and NORTHERN NIGERIA
Assuming the 90 days trading horizon INTERNATIONAL BREWERIES PLC is expected to generate 1.21 times more return on investment than NORTHERN NIGERIA. However, INTERNATIONAL BREWERIES is 1.21 times more volatile than NORTHERN NIGERIA FLOUR. It trades about 0.12 of its potential returns per unit of risk. NORTHERN NIGERIA FLOUR is currently generating about -0.21 per unit of risk. If you would invest 995.00 in INTERNATIONAL BREWERIES PLC on June 3, 2025 and sell it today you would earn a total of 270.00 from holding INTERNATIONAL BREWERIES PLC or generate 27.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL BREWERIES PLC vs. NORTHERN NIGERIA FLOUR
Performance |
| Timeline |
| INTERNATIONAL BREWERIES |
| NORTHERN NIGERIA FLOUR |
INTERNATIONAL BREWERIES and NORTHERN NIGERIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL BREWERIES and NORTHERN NIGERIA
The main advantage of trading using opposite INTERNATIONAL BREWERIES and NORTHERN NIGERIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL BREWERIES position performs unexpectedly, NORTHERN NIGERIA 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 NORTHERN NIGERIA will offset losses from the drop in NORTHERN NIGERIA's long position.The idea behind INTERNATIONAL BREWERIES PLC and NORTHERN NIGERIA FLOUR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| NORTHERN NIGERIA vs. MULTI TREX INTEGRATED FOODS | NORTHERN NIGERIA vs. STACO INSURANCE PLC | NORTHERN NIGERIA vs. AXAMANSARD INSURANCE PLC | NORTHERN NIGERIA vs. IKEJA HOTELS 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |