Correlation Between BANK OF AFRICA and HIGHTECH PAYMENT
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By analyzing existing cross correlation between BANK OF AFRICA and HIGHTECH PAYMENT SYSTEMS, you can compare the effects of market volatilities on BANK OF AFRICA and HIGHTECH PAYMENT 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 BANK OF AFRICA with a short position of HIGHTECH PAYMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF AFRICA and HIGHTECH PAYMENT.
Diversification Opportunities for BANK OF AFRICA and HIGHTECH PAYMENT
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and HIGHTECH is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF AFRICA and HIGHTECH PAYMENT SYSTEMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIGHTECH PAYMENT SYSTEMS and BANK OF 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 BANK OF AFRICA are associated (or correlated) with HIGHTECH PAYMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIGHTECH PAYMENT SYSTEMS has no effect on the direction of BANK OF AFRICA i.e., BANK OF AFRICA and HIGHTECH PAYMENT go up and down completely randomly.
Pair Corralation between BANK OF AFRICA and HIGHTECH PAYMENT
Assuming the 90 days trading horizon BANK OF AFRICA is expected to generate 0.86 times more return on investment than HIGHTECH PAYMENT. However, BANK OF AFRICA is 1.16 times less risky than HIGHTECH PAYMENT. It trades about 0.26 of its potential returns per unit of risk. HIGHTECH PAYMENT SYSTEMS is currently generating about -0.12 per unit of risk. If you would invest 18,750 in BANK OF AFRICA on August 30, 2024 and sell it today you would earn a total of 950.00 from holding BANK OF AFRICA or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK OF AFRICA vs. HIGHTECH PAYMENT SYSTEMS
Performance |
| Timeline |
| BANK OF AFRICA |
| HIGHTECH PAYMENT SYSTEMS |
BANK OF AFRICA and HIGHTECH PAYMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK OF AFRICA and HIGHTECH PAYMENT
The main advantage of trading using opposite BANK OF AFRICA and HIGHTECH PAYMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK OF AFRICA position performs unexpectedly, HIGHTECH PAYMENT 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 HIGHTECH PAYMENT will offset losses from the drop in HIGHTECH PAYMENT's long position.| BANK OF AFRICA vs. MICRODATA | BANK OF AFRICA vs. MAROC LEASING | BANK OF AFRICA vs. HIGHTECH PAYMENT SYSTEMS | BANK OF AFRICA vs. CREDIT IMMOBILIER ET |
| HIGHTECH PAYMENT vs. MICRODATA | HIGHTECH PAYMENT vs. CFG BANK | HIGHTECH PAYMENT vs. AGMA LAHLOU TAZI | HIGHTECH PAYMENT vs. SAMIR |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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