Correlation Between EQUITY GROUP and CENTUM INVESTMENT
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By analyzing existing cross correlation between EQUITY GROUP HOLDINGS and CENTUM INVESTMENT PANY, you can compare the effects of market volatilities on EQUITY GROUP and CENTUM INVESTMENT 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 EQUITY GROUP with a short position of CENTUM INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of EQUITY GROUP and CENTUM INVESTMENT.
Diversification Opportunities for EQUITY GROUP and CENTUM INVESTMENT
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EQUITY and CENTUM is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding EQUITY GROUP HOLDINGS and CENTUM INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTUM INVESTMENT PANY and EQUITY GROUP 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 EQUITY GROUP HOLDINGS are associated (or correlated) with CENTUM INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTUM INVESTMENT PANY has no effect on the direction of EQUITY GROUP i.e., EQUITY GROUP and CENTUM INVESTMENT go up and down completely randomly.
Pair Corralation between EQUITY GROUP and CENTUM INVESTMENT
Assuming the 90 days trading horizon EQUITY GROUP HOLDINGS is expected to generate 1.19 times more return on investment than CENTUM INVESTMENT. However, EQUITY GROUP is 1.19 times more volatile than CENTUM INVESTMENT PANY. It trades about 0.0 of its potential returns per unit of risk. CENTUM INVESTMENT PANY is currently generating about -0.01 per unit of risk. If you would invest 4,810 in EQUITY GROUP HOLDINGS on September 12, 2024 and sell it today you would lose (10.00) from holding EQUITY GROUP HOLDINGS or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
EQUITY GROUP HOLDINGS vs. CENTUM INVESTMENT PANY
Performance |
| Timeline |
| EQUITY GROUP HOLDINGS |
| CENTUM INVESTMENT PANY |
EQUITY GROUP and CENTUM INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EQUITY GROUP and CENTUM INVESTMENT
The main advantage of trading using opposite EQUITY GROUP and CENTUM INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQUITY GROUP position performs unexpectedly, CENTUM INVESTMENT 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 CENTUM INVESTMENT will offset losses from the drop in CENTUM INVESTMENT's long position.| EQUITY GROUP vs. CARBACID INVESTMENTS LTD | EQUITY GROUP vs. UCHUMI SUPERMARKET PLC | EQUITY GROUP vs. EAST AFRICAN BREWERIES | EQUITY GROUP vs. Kenya Reinsurance |
| CENTUM INVESTMENT vs. NCBA GROUP PLC | CENTUM INVESTMENT vs. EAST AFRICAN BREWERIES | CENTUM INVESTMENT vs. STANDARD CHARTERED BANK | CENTUM INVESTMENT vs. ABSA BANK OF |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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