Correlation Between BLANTYRE HOTELS and STANDARD BANK
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By analyzing existing cross correlation between BLANTYRE HOTELS LIMITED and STANDARD BANK LIMITED, you can compare the effects of market volatilities on BLANTYRE HOTELS and STANDARD 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 BLANTYRE HOTELS with a short position of STANDARD BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLANTYRE HOTELS and STANDARD BANK.
Diversification Opportunities for BLANTYRE HOTELS and STANDARD BANK
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BLANTYRE and STANDARD is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BLANTYRE HOTELS LIMITED and STANDARD BANK LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANDARD BANK LIMITED and BLANTYRE HOTELS 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 BLANTYRE HOTELS LIMITED are associated (or correlated) with STANDARD BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANDARD BANK LIMITED has no effect on the direction of BLANTYRE HOTELS i.e., BLANTYRE HOTELS and STANDARD BANK go up and down completely randomly.
Pair Corralation between BLANTYRE HOTELS and STANDARD BANK
Assuming the 90 days trading horizon BLANTYRE HOTELS is expected to generate 3.67 times less return on investment than STANDARD BANK. But when comparing it to its historical volatility, BLANTYRE HOTELS LIMITED is 3.75 times less risky than STANDARD BANK. It trades about 0.21 of its potential returns per unit of risk. STANDARD BANK LIMITED is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 549,512 in STANDARD BANK LIMITED on August 30, 2024 and sell it today you would earn a total of 50,497 from holding STANDARD BANK LIMITED or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BLANTYRE HOTELS LIMITED vs. STANDARD BANK LIMITED
Performance |
| Timeline |
| BLANTYRE HOTELS |
| STANDARD BANK LIMITED |
BLANTYRE HOTELS and STANDARD BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BLANTYRE HOTELS and STANDARD BANK
The main advantage of trading using opposite BLANTYRE HOTELS and STANDARD BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BLANTYRE HOTELS position performs unexpectedly, STANDARD 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 STANDARD BANK will offset losses from the drop in STANDARD BANK's long position.| BLANTYRE HOTELS vs. NBS BANK LIMITED | BLANTYRE HOTELS vs. MALAWI PROPERTY INVESTMENT | BLANTYRE HOTELS vs. NICO HOLDINGS LIMITED |
| STANDARD BANK vs. NBS BANK LIMITED | STANDARD BANK vs. MALAWI PROPERTY INVESTMENT | STANDARD BANK vs. NICO HOLDINGS LIMITED | STANDARD BANK vs. BLANTYRE HOTELS LIMITED |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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