Correlation Between CO OPERATIVE and CENTUM INVESTMENT
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By analyzing existing cross correlation between CO OPERATIVE BANK OF and CENTUM INVESTMENT PANY, you can compare the effects of market volatilities on CO OPERATIVE and CENTUM INVESTMENT 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 CO OPERATIVE with a short position of CENTUM INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CO OPERATIVE and CENTUM INVESTMENT.
Diversification Opportunities for CO OPERATIVE and CENTUM INVESTMENT
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CBKL and CENTUM is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CO OPERATIVE BANK OF and CENTUM INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTUM INVESTMENT PANY and CO OPERATIVE 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 CO OPERATIVE BANK OF are associated (or correlated) with CENTUM INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTUM INVESTMENT PANY has no effect on the direction of CO OPERATIVE i.e., CO OPERATIVE and CENTUM INVESTMENT go up and down completely randomly.
Pair Corralation between CO OPERATIVE and CENTUM INVESTMENT
Assuming the 90 days trading horizon CO OPERATIVE BANK OF is expected to under-perform the CENTUM INVESTMENT. But the stock apears to be less risky and, when comparing its historical volatility, CO OPERATIVE BANK OF is 1.71 times less risky than CENTUM INVESTMENT. The stock trades about -0.02 of its potential returns per unit of risk. The CENTUM INVESTMENT PANY is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 962.00 in CENTUM INVESTMENT PANY on September 12, 2024 and sell it today you would lose (4.00) from holding CENTUM INVESTMENT PANY or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CO OPERATIVE BANK OF vs. CENTUM INVESTMENT PANY
Performance |
| Timeline |
| CO OPERATIVE BANK |
| CENTUM INVESTMENT PANY |
CO OPERATIVE and CENTUM INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CO OPERATIVE and CENTUM INVESTMENT
The main advantage of trading using opposite CO OPERATIVE and CENTUM INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CO OPERATIVE position performs unexpectedly, CENTUM INVESTMENT 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 CENTUM INVESTMENT will offset losses from the drop in CENTUM INVESTMENT's long position.| CO OPERATIVE vs. NCBA GROUP PLC | CO OPERATIVE vs. EAST AFRICAN BREWERIES | CO OPERATIVE vs. STANDARD CHARTERED BANK | CO OPERATIVE vs. ABSA BANK OF |
| CENTUM INVESTMENT vs. NCBA GROUP PLC | CENTUM INVESTMENT vs. EAST AFRICAN BREWERIES | CENTUM INVESTMENT vs. STANDARD CHARTERED BANK | CENTUM INVESTMENT vs. ABSA BANK OF |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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