Correlation Between VITAFOAM NIGERIA and GUINEA INSURANCE
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By analyzing existing cross correlation between VITAFOAM NIGERIA PLC and GUINEA INSURANCE PLC, you can compare the effects of market volatilities on VITAFOAM NIGERIA and GUINEA INSURANCE 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 VITAFOAM NIGERIA with a short position of GUINEA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of VITAFOAM NIGERIA and GUINEA INSURANCE.
Diversification Opportunities for VITAFOAM NIGERIA and GUINEA INSURANCE
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VITAFOAM and GUINEA is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding VITAFOAM NIGERIA PLC and GUINEA INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUINEA INSURANCE PLC and VITAFOAM NIGERIA 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 VITAFOAM NIGERIA PLC are associated (or correlated) with GUINEA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUINEA INSURANCE PLC has no effect on the direction of VITAFOAM NIGERIA i.e., VITAFOAM NIGERIA and GUINEA INSURANCE go up and down completely randomly.
Pair Corralation between VITAFOAM NIGERIA and GUINEA INSURANCE
Assuming the 90 days trading horizon VITAFOAM NIGERIA is expected to generate 2.18 times less return on investment than GUINEA INSURANCE. But when comparing it to its historical volatility, VITAFOAM NIGERIA PLC is 1.93 times less risky than GUINEA INSURANCE. It trades about 0.22 of its potential returns per unit of risk. GUINEA INSURANCE PLC is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 68.00 in GUINEA INSURANCE PLC on May 31, 2025 and sell it today you would earn a total of 86.00 from holding GUINEA INSURANCE PLC or generate 126.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VITAFOAM NIGERIA PLC vs. GUINEA INSURANCE PLC
Performance |
| Timeline |
| VITAFOAM NIGERIA PLC |
| GUINEA INSURANCE PLC |
VITAFOAM NIGERIA and GUINEA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VITAFOAM NIGERIA and GUINEA INSURANCE
The main advantage of trading using opposite VITAFOAM NIGERIA and GUINEA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VITAFOAM NIGERIA position performs unexpectedly, GUINEA INSURANCE 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 GUINEA INSURANCE will offset losses from the drop in GUINEA INSURANCE's long position.| VITAFOAM NIGERIA vs. STACO INSURANCE PLC | VITAFOAM NIGERIA vs. AXAMANSARD INSURANCE PLC | VITAFOAM NIGERIA vs. STERLING FINANCIAL HOLDINGS | VITAFOAM NIGERIA vs. LIVINGTRUST MORTGAGE BANK |
| GUINEA INSURANCE vs. MULTI TREX INTEGRATED FOODS | GUINEA INSURANCE vs. NEM INSURANCE PLC | GUINEA INSURANCE vs. AXAMANSARD INSURANCE PLC | GUINEA INSURANCE vs. AFRICAN ALLIANCE INSURANCE |
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 CEOs Directory module to screen CEOs from public companies around the world.
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