Correlation Between AFROMEDIA PLC and STANDARD ALLIANCE
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By analyzing existing cross correlation between AFROMEDIA PLC and STANDARD ALLIANCE INSURANCE, you can compare the effects of market volatilities on AFROMEDIA PLC and STANDARD 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 STANDARD ALLIANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFROMEDIA PLC and STANDARD ALLIANCE.
Diversification Opportunities for AFROMEDIA PLC and STANDARD ALLIANCE
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFROMEDIA and STANDARD is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding AFROMEDIA PLC and STANDARD ALLIANCE INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANDARD ALLIANCE 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 STANDARD ALLIANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANDARD ALLIANCE has no effect on the direction of AFROMEDIA PLC i.e., AFROMEDIA PLC and STANDARD ALLIANCE go up and down completely randomly.
Pair Corralation between AFROMEDIA PLC and STANDARD ALLIANCE
If you would invest 20.00 in STANDARD ALLIANCE INSURANCE on October 26, 2024 and sell it today you would earn a total of 0.00 from holding STANDARD ALLIANCE INSURANCE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFROMEDIA PLC vs. STANDARD ALLIANCE INSURANCE
Performance |
| Timeline |
| AFROMEDIA PLC |
| STANDARD ALLIANCE |
AFROMEDIA PLC and STANDARD ALLIANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFROMEDIA PLC and STANDARD ALLIANCE
The main advantage of trading using opposite AFROMEDIA PLC and STANDARD ALLIANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFROMEDIA PLC position performs unexpectedly, STANDARD 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 STANDARD ALLIANCE will offset losses from the drop in STANDARD ALLIANCE's long position.| AFROMEDIA PLC vs. TRANSCORP HOTELS PLC | AFROMEDIA PLC vs. BUA FOODS PLC | AFROMEDIA PLC vs. FIDELITY BANK PLC | AFROMEDIA PLC vs. C I LEASING |
| STANDARD ALLIANCE vs. AIICO INSURANCE PLC | STANDARD ALLIANCE vs. UNION HOMES SAVINGS | STANDARD ALLIANCE vs. ABBEY MORTGAGE BANK | STANDARD ALLIANCE vs. WEMA BANK PLC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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