Correlation Between EAST AFRICAN and MUCOBA BANK
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By analyzing existing cross correlation between EAST AFRICAN BREWERIES and MUCOBA BANK PLC, you can compare the effects of market volatilities on EAST AFRICAN and MUCOBA BANK 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 EAST AFRICAN with a short position of MUCOBA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST AFRICAN and MUCOBA BANK.
Diversification Opportunities for EAST AFRICAN and MUCOBA BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EAST and MUCOBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAST AFRICAN BREWERIES and MUCOBA BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUCOBA BANK PLC and EAST AFRICAN 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 EAST AFRICAN BREWERIES are associated (or correlated) with MUCOBA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUCOBA BANK PLC has no effect on the direction of EAST AFRICAN i.e., EAST AFRICAN and MUCOBA BANK go up and down completely randomly.
Pair Corralation between EAST AFRICAN and MUCOBA BANK
If you would invest 325,000 in EAST AFRICAN BREWERIES on November 4, 2024 and sell it today you would earn a total of 31,000 from holding EAST AFRICAN BREWERIES or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
EAST AFRICAN BREWERIES vs. MUCOBA BANK PLC
Performance |
| Timeline |
| EAST AFRICAN BREWERIES |
| MUCOBA BANK PLC |
EAST AFRICAN and MUCOBA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAST AFRICAN and MUCOBA BANK
The main advantage of trading using opposite EAST AFRICAN and MUCOBA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAST AFRICAN position performs unexpectedly, MUCOBA BANK 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 MUCOBA BANK will offset losses from the drop in MUCOBA BANK's long position.| EAST AFRICAN vs. YETU MICROFINANCE PLC | EAST AFRICAN vs. CRDB BANK LTD | EAST AFRICAN vs. NATION MEDIA GROUP | EAST AFRICAN vs. MWALIMU MERCIAL BANK |
| MUCOBA BANK vs. YETU MICROFINANCE PLC | MUCOBA BANK vs. CRDB BANK LTD | MUCOBA BANK vs. NATION MEDIA GROUP | MUCOBA BANK vs. MWALIMU MERCIAL BANK |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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