Correlation Between AFRICAN ALLIANCE and CHAMPION BREWERIES
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By analyzing existing cross correlation between AFRICAN ALLIANCE INSURANCE and CHAMPION BREWERIES PLC, you can compare the effects of market volatilities on AFRICAN ALLIANCE and CHAMPION BREWERIES 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 AFRICAN ALLIANCE with a short position of CHAMPION BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFRICAN ALLIANCE and CHAMPION BREWERIES.
Diversification Opportunities for AFRICAN ALLIANCE and CHAMPION BREWERIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFRICAN and CHAMPION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFRICAN ALLIANCE INSURANCE and CHAMPION BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAMPION BREWERIES PLC and AFRICAN ALLIANCE 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 AFRICAN ALLIANCE INSURANCE are associated (or correlated) with CHAMPION BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAMPION BREWERIES PLC has no effect on the direction of AFRICAN ALLIANCE i.e., AFRICAN ALLIANCE and CHAMPION BREWERIES go up and down completely randomly.
Pair Corralation between AFRICAN ALLIANCE and CHAMPION BREWERIES
If you would invest 418.00 in CHAMPION BREWERIES PLC on November 5, 2024 and sell it today you would lose (23.00) from holding CHAMPION BREWERIES PLC or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFRICAN ALLIANCE INSURANCE vs. CHAMPION BREWERIES PLC
Performance |
| Timeline |
| AFRICAN ALLIANCE INS |
| CHAMPION BREWERIES PLC |
AFRICAN ALLIANCE and CHAMPION BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFRICAN ALLIANCE and CHAMPION BREWERIES
The main advantage of trading using opposite AFRICAN ALLIANCE and CHAMPION BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFRICAN ALLIANCE position performs unexpectedly, CHAMPION BREWERIES 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 CHAMPION BREWERIES will offset losses from the drop in CHAMPION BREWERIES's long position.| AFRICAN ALLIANCE vs. ECOBANK TRANSNATIONAL INCORPORATED | AFRICAN ALLIANCE vs. CUSTODIAN INVESTMENT PLC | AFRICAN ALLIANCE vs. NEM INSURANCE PLC | AFRICAN ALLIANCE vs. DN TYRE RUBBER |
| CHAMPION BREWERIES vs. CUSTODIAN INVESTMENT PLC | CHAMPION BREWERIES vs. UNION HOMES SAVINGS | CHAMPION BREWERIES vs. MULTI TREX INTEGRATED FOODS | CHAMPION BREWERIES vs. NIGERIAN BREWERIES PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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