Correlation Between AFREXIMBANK and PSG FINANCIAL
Can any of the company-specific risk be diversified away by investing in both AFREXIMBANK and PSG FINANCIAL 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 PSG FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFREXIMBANK and PSG FINANCIAL SERVICES, you can compare the effects of market volatilities on AFREXIMBANK and PSG FINANCIAL 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 PSG FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFREXIMBANK and PSG FINANCIAL.
Diversification Opportunities for AFREXIMBANK and PSG FINANCIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFREXIMBANK and PSG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFREXIMBANK and PSG FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSG FINANCIAL SERVICES 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 PSG FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSG FINANCIAL SERVICES has no effect on the direction of AFREXIMBANK i.e., AFREXIMBANK and PSG FINANCIAL go up and down completely randomly.
Pair Corralation between AFREXIMBANK and PSG FINANCIAL
If you would invest 269.00 in AFREXIMBANK on September 14, 2024 and sell it today you would earn a total of 1.00 from holding AFREXIMBANK or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AFREXIMBANK vs. PSG FINANCIAL SERVICES
Performance |
| Timeline |
| AFREXIMBANK |
| PSG FINANCIAL SERVICES |
AFREXIMBANK and PSG FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFREXIMBANK and PSG FINANCIAL
The main advantage of trading using opposite AFREXIMBANK and PSG FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFREXIMBANK position performs unexpectedly, PSG FINANCIAL 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 PSG FINANCIAL will offset losses from the drop in PSG FINANCIAL's long position.| AFREXIMBANK vs. CONSTANCE HOTELS SERVICES | AFREXIMBANK vs. HOTELEST LTD | AFREXIMBANK vs. ASTORIA INVESTMENT LTD | AFREXIMBANK vs. AFRICA CLEAN ENERGY |
| PSG FINANCIAL vs. HOTELEST LTD | PSG FINANCIAL vs. UNITED INVESTMENTS LTD | PSG FINANCIAL vs. ABC BANKING PORATION | PSG FINANCIAL vs. AFRICA CLEAN ENERGY |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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