Correlation Between AIRTEL MALAWI and STANDARD BANK
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By analyzing existing cross correlation between AIRTEL MALAWI PLC and STANDARD BANK LIMITED, you can compare the effects of market volatilities on AIRTEL MALAWI and STANDARD BANK 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 AIRTEL MALAWI with a short position of STANDARD BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRTEL MALAWI and STANDARD BANK.
Diversification Opportunities for AIRTEL MALAWI and STANDARD BANK
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between AIRTEL and STANDARD is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding AIRTEL MALAWI PLC and STANDARD BANK LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANDARD BANK LIMITED and AIRTEL MALAWI 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 AIRTEL MALAWI PLC are associated (or correlated) with STANDARD BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANDARD BANK LIMITED has no effect on the direction of AIRTEL MALAWI i.e., AIRTEL MALAWI and STANDARD BANK go up and down completely randomly.
Pair Corralation between AIRTEL MALAWI and STANDARD BANK
Assuming the 90 days trading horizon AIRTEL MALAWI is expected to generate 2.9 times less return on investment than STANDARD BANK. In addition to that, AIRTEL MALAWI is 1.39 times more volatile than STANDARD BANK LIMITED. It trades about 0.04 of its total potential returns per unit of risk. STANDARD BANK LIMITED is currently generating about 0.17 per unit of volatility. If you would invest 220,000 in STANDARD BANK LIMITED on November 2, 2024 and sell it today you would earn a total of 470,002 from holding STANDARD BANK LIMITED or generate 213.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AIRTEL MALAWI PLC vs. STANDARD BANK LIMITED
Performance |
| Timeline |
| AIRTEL MALAWI PLC |
| STANDARD BANK LIMITED |
AIRTEL MALAWI and STANDARD BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRTEL MALAWI and STANDARD BANK
The main advantage of trading using opposite AIRTEL MALAWI and STANDARD BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRTEL MALAWI position performs unexpectedly, STANDARD BANK 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 BANK will offset losses from the drop in STANDARD BANK's long position.| AIRTEL MALAWI vs. FDH BANK PLC | AIRTEL MALAWI vs. NATIONAL INVESTMENT TRUST | AIRTEL MALAWI vs. STANDARD BANK LIMITED | AIRTEL MALAWI vs. NBS BANK LIMITED |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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