Correlation Between AFRIPRISE INVESTMENT and CRDB BANK
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By analyzing existing cross correlation between AFRIPRISE INVESTMENT PLC and CRDB BANK LTD, you can compare the effects of market volatilities on AFRIPRISE INVESTMENT and CRDB BANK 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 AFRIPRISE INVESTMENT with a short position of CRDB BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFRIPRISE INVESTMENT and CRDB BANK.
Diversification Opportunities for AFRIPRISE INVESTMENT and CRDB BANK
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AFRIPRISE and CRDB is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding AFRIPRISE INVESTMENT PLC and CRDB BANK LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRDB BANK LTD and AFRIPRISE INVESTMENT 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 AFRIPRISE INVESTMENT PLC are associated (or correlated) with CRDB BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRDB BANK LTD has no effect on the direction of AFRIPRISE INVESTMENT i.e., AFRIPRISE INVESTMENT and CRDB BANK go up and down completely randomly.
Pair Corralation between AFRIPRISE INVESTMENT and CRDB BANK
Assuming the 90 days trading horizon AFRIPRISE INVESTMENT PLC is expected to generate 2.08 times more return on investment than CRDB BANK. However, AFRIPRISE INVESTMENT is 2.08 times more volatile than CRDB BANK LTD. It trades about 0.07 of its potential returns per unit of risk. CRDB BANK LTD is currently generating about -0.09 per unit of risk. If you would invest 23,000 in AFRIPRISE INVESTMENT PLC on August 31, 2024 and sell it today you would earn a total of 500.00 from holding AFRIPRISE INVESTMENT PLC or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AFRIPRISE INVESTMENT PLC vs. CRDB BANK LTD
Performance |
| Timeline |
| AFRIPRISE INVESTMENT PLC |
| CRDB BANK LTD |
AFRIPRISE INVESTMENT and CRDB BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFRIPRISE INVESTMENT and CRDB BANK
The main advantage of trading using opposite AFRIPRISE INVESTMENT and CRDB BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFRIPRISE INVESTMENT position performs unexpectedly, CRDB BANK 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 CRDB BANK will offset losses from the drop in CRDB BANK's long position.| AFRIPRISE INVESTMENT vs. NATIONAL INVESTMENT PANY | AFRIPRISE INVESTMENT vs. MWALIMU MERCIAL BANK | AFRIPRISE INVESTMENT vs. DCB MERCIAL BANK | AFRIPRISE INVESTMENT vs. MUCOBA BANK PLC |
| CRDB BANK vs. YETU MICROFINANCE PLC | CRDB BANK vs. MWALIMU MERCIAL BANK | CRDB BANK vs. AFRIPRISE INVESTMENT PLC | CRDB BANK vs. PRECISION AIR SERVICES |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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