Correlation Between AFRIPRISE INVESTMENT and NATION MEDIA
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By analyzing existing cross correlation between AFRIPRISE INVESTMENT PLC and NATION MEDIA GROUP, you can compare the effects of market volatilities on AFRIPRISE INVESTMENT and NATION MEDIA 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 NATION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFRIPRISE INVESTMENT and NATION MEDIA.
Diversification Opportunities for AFRIPRISE INVESTMENT and NATION MEDIA
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AFRIPRISE and NATION is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AFRIPRISE INVESTMENT PLC and NATION MEDIA GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATION MEDIA GROUP 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 NATION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATION MEDIA GROUP has no effect on the direction of AFRIPRISE INVESTMENT i.e., AFRIPRISE INVESTMENT and NATION MEDIA go up and down completely randomly.
Pair Corralation between AFRIPRISE INVESTMENT and NATION MEDIA
Assuming the 90 days trading horizon AFRIPRISE INVESTMENT PLC is expected to under-perform the NATION MEDIA. But the stock apears to be less risky and, when comparing its historical volatility, AFRIPRISE INVESTMENT PLC is 3.31 times less risky than NATION MEDIA. The stock trades about -0.09 of its potential returns per unit of risk. The NATION MEDIA GROUP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 24,500 in NATION MEDIA GROUP on October 25, 2024 and sell it today you would earn a total of 500.00 from holding NATION MEDIA GROUP or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFRIPRISE INVESTMENT PLC vs. NATION MEDIA GROUP
Performance |
| Timeline |
| AFRIPRISE INVESTMENT PLC |
| NATION MEDIA GROUP |
AFRIPRISE INVESTMENT and NATION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFRIPRISE INVESTMENT and NATION MEDIA
The main advantage of trading using opposite AFRIPRISE INVESTMENT and NATION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFRIPRISE INVESTMENT position performs unexpectedly, NATION MEDIA 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 NATION MEDIA will offset losses from the drop in NATION MEDIA's long position.| AFRIPRISE INVESTMENT vs. YETU MICROFINANCE PLC | AFRIPRISE INVESTMENT vs. MUCOBA BANK PLC | AFRIPRISE INVESTMENT vs. TANZANIA PORTLAND CEMENT | AFRIPRISE INVESTMENT vs. TOL GASES LTD |
| NATION MEDIA vs. AFRIPRISE INVESTMENT PLC | NATION MEDIA vs. EAST AFRICAN BREWERIES | NATION MEDIA vs. NATIONAL MICROFINANCE BANK | NATION MEDIA vs. TANZANIA CIGARETTE LTD |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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