Correlation Between BRITISH AMERICAN and STANBIC BANK
Can any of the company-specific risk be diversified away by investing in both BRITISH AMERICAN and STANBIC BANK 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 STANBIC BANK 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 STANBIC BANK HOLDINGS, you can compare the effects of market volatilities on BRITISH AMERICAN and STANBIC 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 BRITISH AMERICAN with a short position of STANBIC BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRITISH AMERICAN and STANBIC BANK.
Diversification Opportunities for BRITISH AMERICAN and STANBIC BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BRITISH and STANBIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BRITISH AMERICAN TOBACCO and STANBIC BANK HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANBIC BANK HOLDINGS 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 STANBIC BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANBIC BANK HOLDINGS has no effect on the direction of BRITISH AMERICAN i.e., BRITISH AMERICAN and STANBIC BANK go up and down completely randomly.
Pair Corralation between BRITISH AMERICAN and STANBIC BANK
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. STANBIC BANK HOLDINGS
Performance |
| Timeline |
| BRITISH AMERICAN TOBACCO |
| STANBIC BANK HOLDINGS |
BRITISH AMERICAN and STANBIC BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRITISH AMERICAN and STANBIC BANK
The main advantage of trading using opposite BRITISH AMERICAN and STANBIC BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRITISH AMERICAN position performs unexpectedly, STANBIC 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 STANBIC BANK will offset losses from the drop in STANBIC BANK'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 |
| STANBIC BANK vs. CENTUM INVESTMENT PANY | STANBIC BANK vs. BANK OF BARODA | STANBIC BANK vs. BRITISH AMERICAN TOBACCO |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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