Correlation Between AFROMEDIA PLC and AFRICAN ALLIANCE
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By analyzing existing cross correlation between AFROMEDIA PLC and AFRICAN ALLIANCE INSURANCE, you can compare the effects of market volatilities on AFROMEDIA PLC and AFRICAN ALLIANCE 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 AFROMEDIA PLC with a short position of AFRICAN ALLIANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFROMEDIA PLC and AFRICAN ALLIANCE.
Diversification Opportunities for AFROMEDIA PLC and AFRICAN ALLIANCE
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFROMEDIA and AFRICAN is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding AFROMEDIA PLC and AFRICAN ALLIANCE INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFRICAN ALLIANCE INS and AFROMEDIA PLC 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 AFROMEDIA PLC are associated (or correlated) with AFRICAN ALLIANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFRICAN ALLIANCE INS has no effect on the direction of AFROMEDIA PLC i.e., AFROMEDIA PLC and AFRICAN ALLIANCE go up and down completely randomly.
Pair Corralation between AFROMEDIA PLC and AFRICAN ALLIANCE
If you would invest 20.00 in AFROMEDIA PLC on November 5, 2024 and sell it today you would earn a total of 4.00 from holding AFROMEDIA PLC or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 87.65% |
| Values | Daily Returns |
AFROMEDIA PLC vs. AFRICAN ALLIANCE INSURANCE
Performance |
| Timeline |
| AFROMEDIA PLC |
| AFRICAN ALLIANCE INS |
AFROMEDIA PLC and AFRICAN ALLIANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFROMEDIA PLC and AFRICAN ALLIANCE
The main advantage of trading using opposite AFROMEDIA PLC and AFRICAN ALLIANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFROMEDIA PLC position performs unexpectedly, AFRICAN ALLIANCE 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 AFRICAN ALLIANCE will offset losses from the drop in AFRICAN ALLIANCE's long position.| AFROMEDIA PLC vs. NEM INSURANCE PLC | AFROMEDIA PLC vs. UNION HOMES REAL | AFROMEDIA PLC vs. ASO SAVINGS AND | AFROMEDIA PLC vs. BUA FOODS 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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