Correlation Between ABSA BANK and TOTALENERGIES MARKETING
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By analyzing existing cross correlation between ABSA BANK OF and TOTALENERGIES MARKETING KENYA, you can compare the effects of market volatilities on ABSA BANK and TOTALENERGIES MARKETING 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 ABSA BANK with a short position of TOTALENERGIES MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABSA BANK and TOTALENERGIES MARKETING.
Diversification Opportunities for ABSA BANK and TOTALENERGIES MARKETING
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ABSA and TOTALENERGIES is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ABSA BANK OF and TOTALENERGIES MARKETING KENYA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTALENERGIES MARKETING and ABSA BANK 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 ABSA BANK OF are associated (or correlated) with TOTALENERGIES MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTALENERGIES MARKETING has no effect on the direction of ABSA BANK i.e., ABSA BANK and TOTALENERGIES MARKETING go up and down completely randomly.
Pair Corralation between ABSA BANK and TOTALENERGIES MARKETING
Assuming the 90 days trading horizon ABSA BANK OF is expected to generate 0.4 times more return on investment than TOTALENERGIES MARKETING. However, ABSA BANK OF is 2.49 times less risky than TOTALENERGIES MARKETING. It trades about 0.04 of its potential returns per unit of risk. TOTALENERGIES MARKETING KENYA is currently generating about 0.01 per unit of risk. If you would invest 1,200 in ABSA BANK OF on September 3, 2024 and sell it today you would earn a total of 295.00 from holding ABSA BANK OF or generate 24.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABSA BANK OF vs. TOTALENERGIES MARKETING KENYA
Performance |
| Timeline |
| ABSA BANK |
| TOTALENERGIES MARKETING |
ABSA BANK and TOTALENERGIES MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABSA BANK and TOTALENERGIES MARKETING
The main advantage of trading using opposite ABSA BANK and TOTALENERGIES MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABSA BANK position performs unexpectedly, TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING will offset losses from the drop in TOTALENERGIES MARKETING's long position.| ABSA BANK vs. CARBACID INVESTMENTS LTD | ABSA BANK vs. CIC INSURANCE GROUP | ABSA BANK vs. BRITISH AMERICAN TOBACCO | ABSA BANK vs. HOME AFRIKA LTD |
| TOTALENERGIES MARKETING vs. ABSA BANK OF | TOTALENERGIES MARKETING vs. CENTUM INVESTMENT PANY | TOTALENERGIES MARKETING vs. KENYA RE INSURANCE PORATION | TOTALENERGIES MARKETING vs. CARBACID INVESTMENTS LTD |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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