Correlation Between AXAMANSARD INSURANCE and BUA FOODS
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By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and BUA FOODS PLC, you can compare the effects of market volatilities on AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE with a short position of BUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and BUA FOODS.
Diversification Opportunities for AXAMANSARD INSURANCE and BUA FOODS
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AXAMANSARD and BUA is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and BUA FOODS go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and BUA FOODS
Assuming the 90 days trading horizon AXAMANSARD INSURANCE PLC is expected to generate 2.61 times more return on investment than BUA FOODS. However, AXAMANSARD INSURANCE is 2.61 times more volatile than BUA FOODS PLC. It trades about 0.25 of its potential returns per unit of risk. BUA FOODS PLC is currently generating about 0.29 per unit of risk. If you would invest 920.00 in AXAMANSARD INSURANCE PLC on June 1, 2025 and sell it today you would earn a total of 640.00 from holding AXAMANSARD INSURANCE PLC or generate 69.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXAMANSARD INSURANCE PLC vs. BUA FOODS PLC
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| BUA FOODS PLC |
AXAMANSARD INSURANCE and BUA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and BUA FOODS
The main advantage of trading using opposite AXAMANSARD INSURANCE and BUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE 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.| AXAMANSARD INSURANCE vs. STERLING FINANCIAL HOLDINGS | AXAMANSARD INSURANCE vs. JAIZ BANK PLC | AXAMANSARD INSURANCE vs. NIGERIAN BREWERIES PLC | AXAMANSARD INSURANCE vs. STACO INSURANCE PLC |
| BUA FOODS vs. ECOBANK TRANSNATIONAL INCORPORATED | BUA FOODS vs. INDUSTRIAL MEDICAL GASES | BUA FOODS vs. ASO SAVINGS AND | BUA FOODS vs. UNITED BANK FOR |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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