Correlation Between AGAPE GLOBAL and AFREXIMBANK
Can any of the company-specific risk be diversified away by investing in both AGAPE GLOBAL and AFREXIMBANK 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 AFREXIMBANK 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 AFREXIMBANK, you can compare the effects of market volatilities on AGAPE GLOBAL and AFREXIMBANK 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 AFREXIMBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGAPE GLOBAL and AFREXIMBANK.
Diversification Opportunities for AGAPE GLOBAL and AFREXIMBANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGAPE and AFREXIMBANK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGAPE GLOBAL INVESTMENTS and AFREXIMBANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFREXIMBANK 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 AFREXIMBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFREXIMBANK has no effect on the direction of AGAPE GLOBAL i.e., AGAPE GLOBAL and AFREXIMBANK go up and down completely randomly.
Pair Corralation between AGAPE GLOBAL and AFREXIMBANK
Assuming the 90 days trading horizon AGAPE GLOBAL INVESTMENTS is expected to under-perform the AFREXIMBANK. But the stock apears to be less risky and, when comparing its historical volatility, AGAPE GLOBAL INVESTMENTS is 1.17 times less risky than AFREXIMBANK. The stock trades about -0.07 of its potential returns per unit of risk. The AFREXIMBANK is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 269.00 in AFREXIMBANK on September 14, 2024 and sell it today you would earn a total of 1.00 from holding AFREXIMBANK or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 71.25% |
| Values | Daily Returns |
AGAPE GLOBAL INVESTMENTS vs. AFREXIMBANK
Performance |
| Timeline |
| AGAPE GLOBAL INVESTMENTS |
| AFREXIMBANK |
AGAPE GLOBAL and AFREXIMBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGAPE GLOBAL and AFREXIMBANK
The main advantage of trading using opposite AGAPE GLOBAL and AFREXIMBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGAPE GLOBAL position performs unexpectedly, AFREXIMBANK 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 AFREXIMBANK will offset losses from the drop in AFREXIMBANK's long position.| AGAPE GLOBAL vs. UNITED INVESTMENTS LTD | AGAPE GLOBAL vs. FINCORP INVESTMENT LTD | AGAPE GLOBAL vs. CAVELL TOURISTIC INVESTMENTS | AGAPE GLOBAL vs. ASTORIA INVESTMENT LTD |
| AFREXIMBANK vs. CONSTANCE HOTELS SERVICES | AFREXIMBANK vs. HOTELEST LTD | AFREXIMBANK vs. ASTORIA INVESTMENT LTD | AFREXIMBANK vs. AFRICA CLEAN ENERGY |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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