Correlation Between AFRICAN ALLIANCE and UNION HOMES
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By analyzing existing cross correlation between AFRICAN ALLIANCE INSURANCE and UNION HOMES REAL, you can compare the effects of market volatilities on AFRICAN ALLIANCE and UNION HOMES 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 UNION HOMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFRICAN ALLIANCE and UNION HOMES.
Diversification Opportunities for AFRICAN ALLIANCE and UNION HOMES
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between AFRICAN and UNION is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding AFRICAN ALLIANCE INSURANCE and UNION HOMES REAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNION HOMES REAL 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 UNION HOMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNION HOMES REAL has no effect on the direction of AFRICAN ALLIANCE i.e., AFRICAN ALLIANCE and UNION HOMES go up and down completely randomly.
Pair Corralation between AFRICAN ALLIANCE and UNION HOMES
If you would invest 3,660 in UNION HOMES REAL on October 26, 2024 and sell it today you would earn a total of 0.00 from holding UNION HOMES REAL 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. UNION HOMES REAL
Performance |
| Timeline |
| AFRICAN ALLIANCE INS |
| UNION HOMES REAL |
AFRICAN ALLIANCE and UNION HOMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFRICAN ALLIANCE and UNION HOMES
The main advantage of trading using opposite AFRICAN ALLIANCE and UNION HOMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFRICAN ALLIANCE position performs unexpectedly, UNION HOMES 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 UNION HOMES will offset losses from the drop in UNION HOMES's long position.| AFRICAN ALLIANCE vs. STACO INSURANCE PLC | AFRICAN ALLIANCE vs. MULTI TREX INTEGRATED FOODS | AFRICAN ALLIANCE vs. ABC TRANSPORT PLC | AFRICAN ALLIANCE vs. JAIZ BANK PLC |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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