Correlation Between AGAPE GLOBAL and AFRICAN DOMESTIC
Can any of the company-specific risk be diversified away by investing in both AGAPE GLOBAL and AFRICAN DOMESTIC 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 AFRICAN DOMESTIC 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 AFRICAN DOMESTIC BOND, you can compare the effects of market volatilities on AGAPE GLOBAL and AFRICAN DOMESTIC 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 AFRICAN DOMESTIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGAPE GLOBAL and AFRICAN DOMESTIC.
Diversification Opportunities for AGAPE GLOBAL and AFRICAN DOMESTIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGAPE and AFRICAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGAPE GLOBAL INVESTMENTS and AFRICAN DOMESTIC BOND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFRICAN DOMESTIC BOND 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 AFRICAN DOMESTIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFRICAN DOMESTIC BOND has no effect on the direction of AGAPE GLOBAL i.e., AGAPE GLOBAL and AFRICAN DOMESTIC go up and down completely randomly.
Pair Corralation between AGAPE GLOBAL and AFRICAN DOMESTIC
If you would invest 616.00 in AFRICAN DOMESTIC BOND on October 26, 2024 and sell it today you would earn a total of 17.00 from holding AFRICAN DOMESTIC BOND or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
AGAPE GLOBAL INVESTMENTS vs. AFRICAN DOMESTIC BOND
Performance |
| Timeline |
| AGAPE GLOBAL INVESTMENTS |
| AFRICAN DOMESTIC BOND |
AGAPE GLOBAL and AFRICAN DOMESTIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGAPE GLOBAL and AFRICAN DOMESTIC
The main advantage of trading using opposite AGAPE GLOBAL and AFRICAN DOMESTIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGAPE GLOBAL position performs unexpectedly, AFRICAN DOMESTIC 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 DOMESTIC will offset losses from the drop in AFRICAN DOMESTIC's long position.| AGAPE GLOBAL vs. FINCORP INVESTMENT LTD | AGAPE GLOBAL vs. UNIVERSAL PARTNERS LTD | AGAPE GLOBAL vs. MCB GROUP LTD | AGAPE GLOBAL vs. MUA LTD |
| AFRICAN DOMESTIC vs. AGAPE GLOBAL INVESTMENTS | AFRICAN DOMESTIC vs. CONSTANCE HOTELS SERVICES | AFRICAN DOMESTIC vs. NEW MAURITIUS HOTELS | AFRICAN DOMESTIC vs. PHOENIX INVESTMENT PANY |
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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