Correlation Between BRITISH AMERICAN and KCB GROUP
Can any of the company-specific risk be diversified away by investing in both BRITISH AMERICAN and KCB GROUP 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 BRITISH AMERICAN and KCB GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRITISH AMERICAN TOBACCO and KCB GROUP LTD, you can compare the effects of market volatilities on BRITISH AMERICAN and KCB GROUP 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 BRITISH AMERICAN with a short position of KCB GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRITISH AMERICAN and KCB GROUP.
Diversification Opportunities for BRITISH AMERICAN and KCB GROUP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BRITISH and KCB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BRITISH AMERICAN TOBACCO and KCB GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCB GROUP LTD and BRITISH AMERICAN 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 BRITISH AMERICAN TOBACCO are associated (or correlated) with KCB GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCB GROUP LTD has no effect on the direction of BRITISH AMERICAN i.e., BRITISH AMERICAN and KCB GROUP go up and down completely randomly.
Pair Corralation between BRITISH AMERICAN and KCB GROUP
If you would invest 1,500,000 in BRITISH AMERICAN TOBACCO on November 28, 2024 and sell it today you would earn a total of 0.00 from holding BRITISH AMERICAN TOBACCO or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRITISH AMERICAN TOBACCO vs. KCB GROUP LTD
Performance |
| Timeline |
| BRITISH AMERICAN TOBACCO |
| KCB GROUP LTD |
BRITISH AMERICAN and KCB GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRITISH AMERICAN and KCB GROUP
The main advantage of trading using opposite BRITISH AMERICAN and KCB GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRITISH AMERICAN position performs unexpectedly, KCB GROUP 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 KCB GROUP will offset losses from the drop in KCB GROUP's long position.| BRITISH AMERICAN vs. AIRTEL UGANDA LIMITED | BRITISH AMERICAN vs. NEW VISION PRINTING | BRITISH AMERICAN vs. NATION MEDIA GROUP | BRITISH AMERICAN vs. KCB GROUP LTD |
| KCB GROUP vs. AIRTEL UGANDA LIMITED | KCB GROUP vs. NEW VISION PRINTING | KCB GROUP vs. NATION MEDIA GROUP | KCB GROUP vs. CENTUM INVESTMENT PANY |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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