Correlation Between Afine Investments and Sabvest Capital
Can any of the company-specific risk be diversified away by investing in both Afine Investments and Sabvest Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Afine Investments and Sabvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afine Investments and Sabvest Capital, you can compare the effects of market volatilities on Afine Investments and Sabvest Capital 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 Afine Investments with a short position of Sabvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afine Investments and Sabvest Capital.
Diversification Opportunities for Afine Investments and Sabvest Capital
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Afine and Sabvest is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Afine Investments and Sabvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabvest Capital and Afine Investments 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 Afine Investments are associated (or correlated) with Sabvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabvest Capital has no effect on the direction of Afine Investments i.e., Afine Investments and Sabvest Capital go up and down completely randomly.
Pair Corralation between Afine Investments and Sabvest Capital
Assuming the 90 days trading horizon Afine Investments is expected to generate 17.88 times less return on investment than Sabvest Capital. But when comparing it to its historical volatility, Afine Investments is 1.25 times less risky than Sabvest Capital. It trades about 0.01 of its potential returns per unit of risk. Sabvest Capital is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 739,035 in Sabvest Capital on August 28, 2024 and sell it today you would earn a total of 196,165 from holding Sabvest Capital or generate 26.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Afine Investments vs. Sabvest Capital
Performance |
| Timeline |
| Afine Investments |
| Sabvest Capital |
Afine Investments and Sabvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afine Investments and Sabvest Capital
The main advantage of trading using opposite Afine Investments and Sabvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afine Investments position performs unexpectedly, Sabvest Capital 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 Sabvest Capital will offset losses from the drop in Sabvest Capital's long position.| Afine Investments vs. Schroder European Real | Afine Investments vs. Centaur Bci Balanced | Afine Investments vs. Sabvest Capital | Afine Investments vs. Growthpoint Properties |
| Sabvest Capital vs. Centaur Bci Balanced | Sabvest Capital vs. Growthpoint Properties | Sabvest Capital vs. Bowler Metcalf | Sabvest Capital vs. Shoprite Holdings |
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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