Correlation Between Cairo Communication and AfriTin Mining
Can any of the company-specific risk be diversified away by investing in both Cairo Communication and AfriTin Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cairo Communication and AfriTin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cairo Communication SpA and AfriTin Mining, you can compare the effects of market volatilities on Cairo Communication and AfriTin Mining 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 Cairo Communication with a short position of AfriTin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cairo Communication and AfriTin Mining.
Diversification Opportunities for Cairo Communication and AfriTin Mining
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cairo and AfriTin is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cairo Communication SpA and AfriTin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfriTin Mining and Cairo Communication 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 Cairo Communication SpA are associated (or correlated) with AfriTin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AfriTin Mining has no effect on the direction of Cairo Communication i.e., Cairo Communication and AfriTin Mining go up and down completely randomly.
Pair Corralation between Cairo Communication and AfriTin Mining
Assuming the 90 days trading horizon Cairo Communication SpA is expected to generate 0.38 times more return on investment than AfriTin Mining. However, Cairo Communication SpA is 2.62 times less risky than AfriTin Mining. It trades about 0.41 of its potential returns per unit of risk. AfriTin Mining is currently generating about 0.12 per unit of risk. If you would invest 219.00 in Cairo Communication SpA on September 20, 2024 and sell it today you would earn a total of 39.00 from holding Cairo Communication SpA or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cairo Communication SpA vs. AfriTin Mining
Performance |
| Timeline |
| Cairo Communication SpA |
| AfriTin Mining |
Cairo Communication and AfriTin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cairo Communication and AfriTin Mining
The main advantage of trading using opposite Cairo Communication and AfriTin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cairo Communication position performs unexpectedly, AfriTin Mining 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 AfriTin Mining will offset losses from the drop in AfriTin Mining's long position.| Cairo Communication vs. Samsung Electronics Co | Cairo Communication vs. Samsung Electronics Co | Cairo Communication vs. Hyundai Motor | Cairo Communication vs. Reliance Industries Ltd |
| AfriTin Mining vs. Givaudan SA | AfriTin Mining vs. Antofagasta PLC | AfriTin Mining vs. Ferrexpo PLC | AfriTin Mining vs. Atalaya Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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