Correlation Between AFRIPRISE INVESTMENT and EAST AFRICAN
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By analyzing existing cross correlation between AFRIPRISE INVESTMENT PLC and EAST AFRICAN BREWERIES, you can compare the effects of market volatilities on AFRIPRISE INVESTMENT and EAST AFRICAN 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 EAST AFRICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFRIPRISE INVESTMENT and EAST AFRICAN.
Diversification Opportunities for AFRIPRISE INVESTMENT and EAST AFRICAN
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AFRIPRISE and EAST is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding AFRIPRISE INVESTMENT PLC and EAST AFRICAN BREWERIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAST AFRICAN BREWERIES 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 EAST AFRICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAST AFRICAN BREWERIES has no effect on the direction of AFRIPRISE INVESTMENT i.e., AFRIPRISE INVESTMENT and EAST AFRICAN go up and down completely randomly.
Pair Corralation between AFRIPRISE INVESTMENT and EAST AFRICAN
Assuming the 90 days trading horizon AFRIPRISE INVESTMENT PLC is expected to under-perform the EAST AFRICAN. But the stock apears to be less risky and, when comparing its historical volatility, AFRIPRISE INVESTMENT PLC is 3.03 times less risky than EAST AFRICAN. The stock trades about -0.13 of its potential returns per unit of risk. The EAST AFRICAN BREWERIES is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 331,000 in EAST AFRICAN BREWERIES on November 5, 2024 and sell it today you would earn a total of 25,000 from holding EAST AFRICAN BREWERIES or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.0% |
| Values | Daily Returns |
AFRIPRISE INVESTMENT PLC vs. EAST AFRICAN BREWERIES
Performance |
| Timeline |
| AFRIPRISE INVESTMENT PLC |
| EAST AFRICAN BREWERIES |
AFRIPRISE INVESTMENT and EAST AFRICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFRIPRISE INVESTMENT and EAST AFRICAN
The main advantage of trading using opposite AFRIPRISE INVESTMENT and EAST AFRICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFRIPRISE INVESTMENT position performs unexpectedly, EAST AFRICAN 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 EAST AFRICAN will offset losses from the drop in EAST AFRICAN's long position.| AFRIPRISE INVESTMENT vs. NATIONAL INVESTMENT PANY | AFRIPRISE INVESTMENT vs. PRECISION AIR SERVICES | AFRIPRISE INVESTMENT vs. EAST AFRICAN BREWERIES | AFRIPRISE INVESTMENT vs. YETU MICROFINANCE PLC |
| EAST AFRICAN vs. YETU MICROFINANCE PLC | EAST AFRICAN vs. CRDB BANK LTD | EAST AFRICAN vs. NATION MEDIA GROUP | EAST AFRICAN vs. MWALIMU MERCIAL BANK |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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