Correlation Between CAFCA and SEED
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By analyzing existing cross correlation between CAFCA LIMITED and SEED LIMITED, you can compare the effects of market volatilities on CAFCA and SEED 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 SEED. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAFCA and SEED.
Diversification Opportunities for CAFCA and SEED
Excellent diversification
The 3 months correlation between CAFCA and SEED is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CAFCA LIMITED and SEED LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEED LIMITED 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 SEED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEED LIMITED has no effect on the direction of CAFCA i.e., CAFCA and SEED go up and down completely randomly.
Pair Corralation between CAFCA and SEED
If you would invest 205,000 in CAFCA LIMITED on October 11, 2024 and sell it today you would earn a total of 0.00 from holding CAFCA LIMITED or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
CAFCA LIMITED vs. SEED LIMITED
Performance |
| Timeline |
| CAFCA LIMITED |
| SEED LIMITED |
CAFCA and SEED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAFCA and SEED
The main advantage of trading using opposite CAFCA and SEED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAFCA position performs unexpectedly, SEED 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 SEED will offset losses from the drop in SEED's long position.| CAFCA vs. BRITISH AMERICAN TOBACCO | CAFCA vs. TANGANDA TEA PANY | CAFCA vs. ZB FINANCIAL HOLDINGS | CAFCA vs. Cass Saddle Agriculture |
| SEED vs. STAR AFRICA PORATION | SEED vs. CAFCA LIMITED | SEED vs. FIRST MUTUAL PROPERTIES | SEED 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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