Correlation Between AGAPE GLOBAL and AFRICA CLEAN
Can any of the company-specific risk be diversified away by investing in both AGAPE GLOBAL and AFRICA CLEAN at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AGAPE GLOBAL and AFRICA CLEAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGAPE GLOBAL INVESTMENTS and AFRICA CLEAN ENERGY, you can compare the effects of market volatilities on AGAPE GLOBAL and AFRICA CLEAN 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 AGAPE GLOBAL with a short position of AFRICA CLEAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGAPE GLOBAL and AFRICA CLEAN.
Diversification Opportunities for AGAPE GLOBAL and AFRICA CLEAN
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGAPE and AFRICA is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding AGAPE GLOBAL INVESTMENTS and AFRICA CLEAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFRICA CLEAN ENERGY and AGAPE GLOBAL 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 AGAPE GLOBAL INVESTMENTS are associated (or correlated) with AFRICA CLEAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFRICA CLEAN ENERGY has no effect on the direction of AGAPE GLOBAL i.e., AGAPE GLOBAL and AFRICA CLEAN go up and down completely randomly.
Pair Corralation between AGAPE GLOBAL and AFRICA CLEAN
Assuming the 90 days trading horizon AGAPE GLOBAL INVESTMENTS is expected to under-perform the AFRICA CLEAN. In addition to that, AGAPE GLOBAL is 1.05 times more volatile than AFRICA CLEAN ENERGY. It trades about -0.07 of its total potential returns per unit of risk. AFRICA CLEAN ENERGY is currently generating about -0.05 per unit of volatility. If you would invest 99.00 in AFRICA CLEAN ENERGY on November 5, 2024 and sell it today you would lose (21.00) from holding AFRICA CLEAN ENERGY or give up 21.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 91.71% |
| Values | Daily Returns |
AGAPE GLOBAL INVESTMENTS vs. AFRICA CLEAN ENERGY
Performance |
| Timeline |
| AGAPE GLOBAL INVESTMENTS |
| AFRICA CLEAN ENERGY |
AGAPE GLOBAL and AFRICA CLEAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGAPE GLOBAL and AFRICA CLEAN
The main advantage of trading using opposite AGAPE GLOBAL and AFRICA CLEAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGAPE GLOBAL position performs unexpectedly, AFRICA CLEAN 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 AFRICA CLEAN will offset losses from the drop in AFRICA CLEAN's long position.| AGAPE GLOBAL vs. ASTORIA INVESTMENT LTD | AGAPE GLOBAL vs. BAYPORT MANAGEMENT LTD | AGAPE GLOBAL vs. UNITED INVESTMENTS LTD | AGAPE GLOBAL vs. NATIONAL INVESTMENT TRUST |
| AFRICA CLEAN vs. PLASTIC INDUSTRY LTD | AFRICA CLEAN vs. PHOENIX BEVERAGES LTD | AFRICA CLEAN vs. HOTELEST LTD | AFRICA CLEAN vs. CAVELL TOURISTIC INVESTMENTS |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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