Correlation Between CHAMPION BREWERIES and AFRICAN ALLIANCE
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By analyzing existing cross correlation between CHAMPION BREWERIES PLC and AFRICAN ALLIANCE INSURANCE, you can compare the effects of market volatilities on CHAMPION BREWERIES and AFRICAN ALLIANCE 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 CHAMPION BREWERIES with a short position of AFRICAN ALLIANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHAMPION BREWERIES and AFRICAN ALLIANCE.
Diversification Opportunities for CHAMPION BREWERIES and AFRICAN ALLIANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHAMPION and AFRICAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHAMPION BREWERIES PLC and AFRICAN ALLIANCE INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFRICAN ALLIANCE INS and CHAMPION BREWERIES 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 CHAMPION BREWERIES PLC are associated (or correlated) with AFRICAN ALLIANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFRICAN ALLIANCE INS has no effect on the direction of CHAMPION BREWERIES i.e., CHAMPION BREWERIES and AFRICAN ALLIANCE go up and down completely randomly.
Pair Corralation between CHAMPION BREWERIES and AFRICAN ALLIANCE
If you would invest 418.00 in CHAMPION BREWERIES PLC on November 5, 2024 and sell it today you would lose (23.00) from holding CHAMPION BREWERIES PLC or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHAMPION BREWERIES PLC vs. AFRICAN ALLIANCE INSURANCE
Performance |
| Timeline |
| CHAMPION BREWERIES PLC |
| AFRICAN ALLIANCE INS |
CHAMPION BREWERIES and AFRICAN ALLIANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHAMPION BREWERIES and AFRICAN ALLIANCE
The main advantage of trading using opposite CHAMPION BREWERIES and AFRICAN ALLIANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAMPION BREWERIES position performs unexpectedly, AFRICAN ALLIANCE 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 AFRICAN ALLIANCE will offset losses from the drop in AFRICAN ALLIANCE's long position.| CHAMPION BREWERIES vs. CUSTODIAN INVESTMENT PLC | CHAMPION BREWERIES vs. UNION HOMES SAVINGS | CHAMPION BREWERIES vs. MULTI TREX INTEGRATED FOODS | CHAMPION BREWERIES vs. NIGERIAN BREWERIES PLC |
| AFRICAN ALLIANCE vs. ECOBANK TRANSNATIONAL INCORPORATED | AFRICAN ALLIANCE vs. CUSTODIAN INVESTMENT PLC | AFRICAN ALLIANCE vs. NEM INSURANCE PLC | AFRICAN ALLIANCE vs. DN TYRE RUBBER |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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