Correlation Between CAFCA and ECONET WIRELESS
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By analyzing existing cross correlation between CAFCA LIMITED and ECONET WIRELESS HOLDINGS, you can compare the effects of market volatilities on CAFCA and ECONET WIRELESS 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 CAFCA with a short position of ECONET WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAFCA and ECONET WIRELESS.
Diversification Opportunities for CAFCA and ECONET WIRELESS
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CAFCA and ECONET is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CAFCA LIMITED and ECONET WIRELESS HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECONET WIRELESS HOLDINGS and CAFCA 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 CAFCA LIMITED are associated (or correlated) with ECONET WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECONET WIRELESS HOLDINGS has no effect on the direction of CAFCA i.e., CAFCA and ECONET WIRELESS go up and down completely randomly.
Pair Corralation between CAFCA and ECONET WIRELESS
Assuming the 90 days trading horizon CAFCA LIMITED is expected to generate 0.71 times more return on investment than ECONET WIRELESS. However, CAFCA LIMITED is 1.42 times less risky than ECONET WIRELESS. It trades about 0.31 of its potential returns per unit of risk. ECONET WIRELESS HOLDINGS is currently generating about -0.09 per unit of risk. If you would invest 156,000 in CAFCA LIMITED on September 14, 2024 and sell it today you would earn a total of 49,000 from holding CAFCA LIMITED or generate 31.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAFCA LIMITED vs. ECONET WIRELESS HOLDINGS
Performance |
| Timeline |
| CAFCA LIMITED |
| ECONET WIRELESS HOLDINGS |
CAFCA and ECONET WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAFCA and ECONET WIRELESS
The main advantage of trading using opposite CAFCA and ECONET WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAFCA position performs unexpectedly, ECONET WIRELESS 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 ECONET WIRELESS will offset losses from the drop in ECONET WIRELESS's long position.| CAFCA vs. FIRST MUTUAL PROPERTIES | CAFCA vs. BRITISH AMERICAN TOBACCO | CAFCA vs. TANGANDA TEA PANY | CAFCA vs. ZB FINANCIAL HOLDINGS |
| ECONET WIRELESS vs. STAR AFRICA PORATION | ECONET WIRELESS vs. CAFCA LIMITED | ECONET WIRELESS vs. FIRST MUTUAL PROPERTIES | ECONET WIRELESS vs. AFRICAN DISTILLERS 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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