Correlation Between Afya and 05526DBB0
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By analyzing existing cross correlation between Afya and B A T, you can compare the effects of market volatilities on Afya and 05526DBB0 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 Afya with a short position of 05526DBB0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afya and 05526DBB0.
Diversification Opportunities for Afya and 05526DBB0
Poor diversification
The 3 months correlation between Afya and 05526DBB0 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Afya and B A T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 05526DBB0 and Afya 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 Afya are associated (or correlated) with 05526DBB0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 05526DBB0 has no effect on the direction of Afya i.e., Afya and 05526DBB0 go up and down completely randomly.
Pair Corralation between Afya and 05526DBB0
Given the investment horizon of 90 days Afya is expected to generate 19.78 times more return on investment than 05526DBB0. However, Afya is 19.78 times more volatile than B A T. It trades about 0.03 of its potential returns per unit of risk. B A T is currently generating about 0.23 per unit of risk. If you would invest 1,661 in Afya on November 28, 2024 and sell it today you would earn a total of 19.00 from holding Afya or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Afya vs. B A T
Performance |
| Timeline |
| Afya |
| 05526DBB0 |
Afya and 05526DBB0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afya and 05526DBB0
The main advantage of trading using opposite Afya and 05526DBB0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afya position performs unexpectedly, 05526DBB0 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 05526DBB0 will offset losses from the drop in 05526DBB0's long position.| Afya vs. Adtalem Global Education | Afya vs. Laureate Education | Afya vs. American Public Education | Afya vs. Strategic Education |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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