Correlation Between INTERNATIONAL ENERGY and NORTHERN NIGERIA
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By analyzing existing cross correlation between INTERNATIONAL ENERGY INSURANCE and NORTHERN NIGERIA FLOUR, you can compare the effects of market volatilities on INTERNATIONAL ENERGY 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 ENERGY with a short position of NORTHERN NIGERIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL ENERGY and NORTHERN NIGERIA.
Diversification Opportunities for INTERNATIONAL ENERGY and NORTHERN NIGERIA
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTERNATIONAL and NORTHERN is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL ENERGY INSURANCE 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 ENERGY 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 ENERGY INSURANCE 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 ENERGY i.e., INTERNATIONAL ENERGY and NORTHERN NIGERIA go up and down completely randomly.
Pair Corralation between INTERNATIONAL ENERGY and NORTHERN NIGERIA
Assuming the 90 days trading horizon INTERNATIONAL ENERGY INSURANCE is expected to generate 6.3 times more return on investment than NORTHERN NIGERIA. However, INTERNATIONAL ENERGY is 6.3 times more volatile than NORTHERN NIGERIA FLOUR. It trades about 0.01 of its potential returns per unit of risk. NORTHERN NIGERIA FLOUR is currently generating about -0.35 per unit of risk. If you would invest 343.00 in INTERNATIONAL ENERGY INSURANCE on June 10, 2025 and sell it today you would lose (9.00) from holding INTERNATIONAL ENERGY INSURANCE or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERNATIONAL ENERGY INSURANCE vs. NORTHERN NIGERIA FLOUR
Performance |
| Timeline |
| INTERNATIONAL ENERGY |
| NORTHERN NIGERIA FLOUR |
INTERNATIONAL ENERGY and NORTHERN NIGERIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL ENERGY and NORTHERN NIGERIA
The main advantage of trading using opposite INTERNATIONAL ENERGY and NORTHERN NIGERIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL ENERGY 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.| INTERNATIONAL ENERGY vs. GUINEA INSURANCE PLC | INTERNATIONAL ENERGY vs. ALUMINIUM EXTRUSION IND | INTERNATIONAL ENERGY vs. VITAFOAM NIGERIA PLC | INTERNATIONAL ENERGY vs. JAPAUL OIL MARITIME |
| NORTHERN NIGERIA vs. INDUSTRIAL MEDICAL GASES | NORTHERN NIGERIA vs. FORTIS GLOBAL INSURANCE | NORTHERN NIGERIA vs. ASO SAVINGS AND | NORTHERN NIGERIA vs. ZENITH BANK 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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