Correlation Between AIRTEL AFRICA and INDUSTRIAL MEDICAL
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By analyzing existing cross correlation between AIRTEL AFRICA PLC and INDUSTRIAL MEDICAL GASES, you can compare the effects of market volatilities on AIRTEL AFRICA and INDUSTRIAL MEDICAL 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 AFRICA with a short position of INDUSTRIAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRTEL AFRICA and INDUSTRIAL MEDICAL.
Diversification Opportunities for AIRTEL AFRICA and INDUSTRIAL MEDICAL
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AIRTEL and INDUSTRIAL is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AIRTEL AFRICA PLC and INDUSTRIAL MEDICAL GASES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDUSTRIAL MEDICAL GASES and AIRTEL AFRICA 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 AFRICA PLC are associated (or correlated) with INDUSTRIAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDUSTRIAL MEDICAL GASES has no effect on the direction of AIRTEL AFRICA i.e., AIRTEL AFRICA and INDUSTRIAL MEDICAL go up and down completely randomly.
Pair Corralation between AIRTEL AFRICA and INDUSTRIAL MEDICAL
Assuming the 90 days trading horizon AIRTEL AFRICA PLC is expected to under-perform the INDUSTRIAL MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, AIRTEL AFRICA PLC is 4.2 times less risky than INDUSTRIAL MEDICAL. The stock trades about -0.22 of its potential returns per unit of risk. The INDUSTRIAL MEDICAL GASES is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,500 in INDUSTRIAL MEDICAL GASES on September 4, 2024 and sell it today you would earn a total of 295.00 from holding INDUSTRIAL MEDICAL GASES or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AIRTEL AFRICA PLC vs. INDUSTRIAL MEDICAL GASES
Performance |
| Timeline |
| AIRTEL AFRICA PLC |
| INDUSTRIAL MEDICAL GASES |
AIRTEL AFRICA and INDUSTRIAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRTEL AFRICA and INDUSTRIAL MEDICAL
The main advantage of trading using opposite AIRTEL AFRICA and INDUSTRIAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRTEL AFRICA position performs unexpectedly, INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL will offset losses from the drop in INDUSTRIAL MEDICAL's long position.| AIRTEL AFRICA vs. GUINEA INSURANCE PLC | AIRTEL AFRICA vs. SECURE ELECTRONIC TECHNOLOGY | AIRTEL AFRICA vs. VFD GROUP | AIRTEL AFRICA vs. VETIVA S P |
| INDUSTRIAL MEDICAL vs. GUINEA INSURANCE PLC | INDUSTRIAL MEDICAL vs. SECURE ELECTRONIC TECHNOLOGY | INDUSTRIAL MEDICAL vs. VFD GROUP | INDUSTRIAL MEDICAL vs. VETIVA S P |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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