Correlation Between CARBACID INVESTMENTS and UCHUMI SUPERMARKET
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By analyzing existing cross correlation between CARBACID INVESTMENTS LTD and UCHUMI SUPERMARKET PLC, you can compare the effects of market volatilities on CARBACID INVESTMENTS and UCHUMI SUPERMARKET 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 CARBACID INVESTMENTS with a short position of UCHUMI SUPERMARKET. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARBACID INVESTMENTS and UCHUMI SUPERMARKET.
Diversification Opportunities for CARBACID INVESTMENTS and UCHUMI SUPERMARKET
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CARBACID and UCHUMI is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CARBACID INVESTMENTS LTD and UCHUMI SUPERMARKET PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCHUMI SUPERMARKET PLC and CARBACID INVESTMENTS 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 CARBACID INVESTMENTS LTD are associated (or correlated) with UCHUMI SUPERMARKET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCHUMI SUPERMARKET PLC has no effect on the direction of CARBACID INVESTMENTS i.e., CARBACID INVESTMENTS and UCHUMI SUPERMARKET go up and down completely randomly.
Pair Corralation between CARBACID INVESTMENTS and UCHUMI SUPERMARKET
Assuming the 90 days trading horizon CARBACID INVESTMENTS LTD is expected to under-perform the UCHUMI SUPERMARKET. But the stock apears to be less risky and, when comparing its historical volatility, CARBACID INVESTMENTS LTD is 1.75 times less risky than UCHUMI SUPERMARKET. The stock trades about -0.38 of its potential returns per unit of risk. The UCHUMI SUPERMARKET PLC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 20.00 in UCHUMI SUPERMARKET PLC on September 4, 2024 and sell it today you would earn a total of 1.00 from holding UCHUMI SUPERMARKET PLC or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CARBACID INVESTMENTS LTD vs. UCHUMI SUPERMARKET PLC
Performance |
| Timeline |
| CARBACID INVESTMENTS LTD |
| UCHUMI SUPERMARKET PLC |
CARBACID INVESTMENTS and UCHUMI SUPERMARKET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARBACID INVESTMENTS and UCHUMI SUPERMARKET
The main advantage of trading using opposite CARBACID INVESTMENTS and UCHUMI SUPERMARKET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARBACID INVESTMENTS position performs unexpectedly, UCHUMI SUPERMARKET 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 UCHUMI SUPERMARKET will offset losses from the drop in UCHUMI SUPERMARKET's long position.| CARBACID INVESTMENTS vs. EQUITY GROUP HOLDINGS | CARBACID INVESTMENTS vs. ABSA BANK OF | CARBACID INVESTMENTS vs. BRITISH AMERICAN TOBACCO | CARBACID INVESTMENTS vs. CO OPERATIVE BANK OF |
| UCHUMI SUPERMARKET vs. CO OPERATIVE BANK OF | UCHUMI SUPERMARKET vs. CENTUM INVESTMENT PANY | UCHUMI SUPERMARKET vs. TOTALENERGIES MARKETING KENYA | UCHUMI SUPERMARKET vs. CIC INSURANCE GROUP |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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