Correlation Between CEC AFRICA and NATIONAL BREWERIES
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By analyzing existing cross correlation between CEC AFRICA INVESTMENTS and NATIONAL BREWERIES PLC, you can compare the effects of market volatilities on CEC AFRICA and NATIONAL BREWERIES 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 CEC AFRICA with a short position of NATIONAL BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEC AFRICA and NATIONAL BREWERIES.
Diversification Opportunities for CEC AFRICA and NATIONAL BREWERIES
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CEC and NATIONAL is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding CEC AFRICA INVESTMENTS and NATIONAL BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL BREWERIES PLC and CEC AFRICA 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 CEC AFRICA INVESTMENTS are associated (or correlated) with NATIONAL BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL BREWERIES PLC has no effect on the direction of CEC AFRICA i.e., CEC AFRICA and NATIONAL BREWERIES go up and down completely randomly.
Pair Corralation between CEC AFRICA and NATIONAL BREWERIES
If you would invest 64.00 in CEC AFRICA INVESTMENTS on September 2, 2024 and sell it today you would earn a total of 0.00 from holding CEC AFRICA INVESTMENTS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEC AFRICA INVESTMENTS vs. NATIONAL BREWERIES PLC
Performance |
| Timeline |
| CEC AFRICA INVESTMENTS |
| NATIONAL BREWERIES PLC |
CEC AFRICA and NATIONAL BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEC AFRICA and NATIONAL BREWERIES
The main advantage of trading using opposite CEC AFRICA and NATIONAL BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEC AFRICA position performs unexpectedly, NATIONAL BREWERIES 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 NATIONAL BREWERIES will offset losses from the drop in NATIONAL BREWERIES's long position.| CEC AFRICA vs. AECI MINING EXPLOSIVES | CEC AFRICA vs. BRITISH AMERICAN TOBACCO ZAMBIA | CEC AFRICA vs. AIRTEL NETWORKS ZAMBIA | CEC AFRICA vs. NATIONAL BREWERIES PLC |
| NATIONAL BREWERIES vs. AECI MINING EXPLOSIVES | NATIONAL BREWERIES vs. BRITISH AMERICAN TOBACCO ZAMBIA | NATIONAL BREWERIES vs. AIRTEL NETWORKS ZAMBIA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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