Correlation Between AFREXIMBANK and AFRICA CLEAN
Can any of the company-specific risk be diversified away by investing in both AFREXIMBANK and AFRICA CLEAN 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 AFREXIMBANK and AFRICA CLEAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFREXIMBANK and AFRICA CLEAN ENERGY, you can compare the effects of market volatilities on AFREXIMBANK and AFRICA CLEAN 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 AFREXIMBANK with a short position of AFRICA CLEAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFREXIMBANK and AFRICA CLEAN.
Diversification Opportunities for AFREXIMBANK and AFRICA CLEAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFREXIMBANK and AFRICA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFREXIMBANK and AFRICA CLEAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFRICA CLEAN ENERGY and AFREXIMBANK 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 AFREXIMBANK are associated (or correlated) with AFRICA CLEAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFRICA CLEAN ENERGY has no effect on the direction of AFREXIMBANK i.e., AFREXIMBANK and AFRICA CLEAN go up and down completely randomly.
Pair Corralation between AFREXIMBANK and AFRICA CLEAN
If you would invest 270.00 in AFREXIMBANK on November 4, 2024 and sell it today you would earn a total of 0.00 from holding AFREXIMBANK or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFREXIMBANK vs. AFRICA CLEAN ENERGY
Performance |
| Timeline |
| AFREXIMBANK |
| AFRICA CLEAN ENERGY |
AFREXIMBANK and AFRICA CLEAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFREXIMBANK and AFRICA CLEAN
The main advantage of trading using opposite AFREXIMBANK and AFRICA CLEAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFREXIMBANK position performs unexpectedly, AFRICA CLEAN 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 AFRICA CLEAN will offset losses from the drop in AFRICA CLEAN's long position.| AFREXIMBANK vs. QUALITY BEVERAGES LTD | AFREXIMBANK vs. NATIONAL INVESTMENT TRUST | AFREXIMBANK vs. PHOENIX INVESTMENT PANY | AFREXIMBANK vs. FINCORP INVESTMENT LTD |
| AFRICA CLEAN vs. FINCORP INVESTMENT LTD | AFRICA CLEAN vs. MCB GROUP LIMITED | AFRICA CLEAN vs. MCB GROUP LTD | AFRICA CLEAN vs. LOTTOTECH LTD |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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