Correlation Between AFREXIMBANK and MAURITIUS CHEMICAL
Can any of the company-specific risk be diversified away by investing in both AFREXIMBANK and MAURITIUS CHEMICAL 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 MAURITIUS CHEMICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFREXIMBANK and MAURITIUS CHEMICAL FERTILIZER, you can compare the effects of market volatilities on AFREXIMBANK and MAURITIUS CHEMICAL 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 MAURITIUS CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFREXIMBANK and MAURITIUS CHEMICAL.
Diversification Opportunities for AFREXIMBANK and MAURITIUS CHEMICAL
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AFREXIMBANK and MAURITIUS is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding AFREXIMBANK and MAURITIUS CHEMICAL FERTILIZER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAURITIUS CHEMICAL 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 MAURITIUS CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAURITIUS CHEMICAL has no effect on the direction of AFREXIMBANK i.e., AFREXIMBANK and MAURITIUS CHEMICAL go up and down completely randomly.
Pair Corralation between AFREXIMBANK and MAURITIUS CHEMICAL
Assuming the 90 days trading horizon AFREXIMBANK is expected to under-perform the MAURITIUS CHEMICAL. In addition to that, AFREXIMBANK is 1.32 times more volatile than MAURITIUS CHEMICAL FERTILIZER. It trades about -0.17 of its total potential returns per unit of risk. MAURITIUS CHEMICAL FERTILIZER is currently generating about 0.12 per unit of volatility. If you would invest 800.00 in MAURITIUS CHEMICAL FERTILIZER on October 26, 2024 and sell it today you would earn a total of 6.00 from holding MAURITIUS CHEMICAL FERTILIZER or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFREXIMBANK vs. MAURITIUS CHEMICAL FERTILIZER
Performance |
| Timeline |
| AFREXIMBANK |
| MAURITIUS CHEMICAL |
AFREXIMBANK and MAURITIUS CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFREXIMBANK and MAURITIUS CHEMICAL
The main advantage of trading using opposite AFREXIMBANK and MAURITIUS CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFREXIMBANK position performs unexpectedly, MAURITIUS CHEMICAL 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 MAURITIUS CHEMICAL will offset losses from the drop in MAURITIUS CHEMICAL's long position.| AFREXIMBANK vs. ASTORIA INVESTMENT LTD | AFREXIMBANK vs. QUALITY BEVERAGES LTD | AFREXIMBANK vs. HOTELEST LTD | AFREXIMBANK vs. NEW MAURITIUS HOTELS |
| MAURITIUS CHEMICAL vs. NATIONAL INVESTMENT TRUST | MAURITIUS CHEMICAL vs. CAVELL TOURISTIC INVESTMENTS | MAURITIUS CHEMICAL vs. AFREXIMBANK | MAURITIUS CHEMICAL vs. PHOENIX INVESTMENT PANY |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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