Correlation Between AFRICAN ALLIANCE and MULTI TREX
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By analyzing existing cross correlation between AFRICAN ALLIANCE INSURANCE and MULTI TREX INTEGRATED FOODS, you can compare the effects of market volatilities on AFRICAN ALLIANCE and MULTI TREX 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 MULTI TREX. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFRICAN ALLIANCE and MULTI TREX.
Diversification Opportunities for AFRICAN ALLIANCE and MULTI TREX
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between AFRICAN and MULTI is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding AFRICAN ALLIANCE INSURANCE and MULTI TREX INTEGRATED FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MULTI TREX INTEGRATED 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 MULTI TREX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MULTI TREX INTEGRATED has no effect on the direction of AFRICAN ALLIANCE i.e., AFRICAN ALLIANCE and MULTI TREX go up and down completely randomly.
Pair Corralation between AFRICAN ALLIANCE and MULTI TREX
If you would invest 36.00 in MULTI TREX INTEGRATED FOODS on October 12, 2024 and sell it today you would earn a total of 0.00 from holding MULTI TREX INTEGRATED FOODS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFRICAN ALLIANCE INSURANCE vs. MULTI TREX INTEGRATED FOODS
Performance |
| Timeline |
| AFRICAN ALLIANCE INS |
| MULTI TREX INTEGRATED |
AFRICAN ALLIANCE and MULTI TREX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFRICAN ALLIANCE and MULTI TREX
The main advantage of trading using opposite AFRICAN ALLIANCE and MULTI TREX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFRICAN ALLIANCE position performs unexpectedly, MULTI TREX 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 MULTI TREX will offset losses from the drop in MULTI TREX's long position.| AFRICAN ALLIANCE vs. SECURE ELECTRONIC TECHNOLOGY | AFRICAN ALLIANCE vs. UNION HOMES SAVINGS | AFRICAN ALLIANCE vs. C I LEASING | AFRICAN ALLIANCE vs. UNIVERSAL INSURANCE PANY |
| MULTI TREX vs. C I LEASING | MULTI TREX vs. AXAMANSARD INSURANCE PLC | MULTI TREX vs. SECURE ELECTRONIC TECHNOLOGY | MULTI TREX vs. AFRICAN ALLIANCE INSURANCE |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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