Correlation Between EQUITY GROUP and KENYA RE
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By analyzing existing cross correlation between EQUITY GROUP HOLDINGS and KENYA RE INSURANCE PORATION, you can compare the effects of market volatilities on EQUITY GROUP and KENYA RE 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 KENYA RE. Check out your portfolio center. Please also check ongoing floating volatility patterns of EQUITY GROUP and KENYA RE.
Diversification Opportunities for EQUITY GROUP and KENYA RE
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EQUITY and KENYA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding EQUITY GROUP HOLDINGS and KENYA RE INSURANCE PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENYA RE INSURANCE 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 KENYA RE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENYA RE INSURANCE has no effect on the direction of EQUITY GROUP i.e., EQUITY GROUP and KENYA RE go up and down completely randomly.
Pair Corralation between EQUITY GROUP and KENYA RE
Assuming the 90 days trading horizon EQUITY GROUP is expected to generate 16.67 times less return on investment than KENYA RE. But when comparing it to its historical volatility, EQUITY GROUP HOLDINGS is 1.23 times less risky than KENYA RE. It trades about 0.0 of its potential returns per unit of risk. KENYA RE INSURANCE PORATION is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 110.00 in KENYA RE INSURANCE PORATION on September 12, 2024 and sell it today you would earn a total of 1.00 from holding KENYA RE INSURANCE PORATION or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
EQUITY GROUP HOLDINGS vs. KENYA RE INSURANCE PORATION
Performance |
| Timeline |
| EQUITY GROUP HOLDINGS |
| KENYA RE INSURANCE |
EQUITY GROUP and KENYA RE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EQUITY GROUP and KENYA RE
The main advantage of trading using opposite EQUITY GROUP and KENYA RE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQUITY GROUP position performs unexpectedly, KENYA RE 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 KENYA RE will offset losses from the drop in KENYA RE'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 |
| KENYA RE vs. NCBA GROUP PLC | KENYA RE vs. EAST AFRICAN BREWERIES | KENYA RE vs. STANDARD CHARTERED BANK | KENYA RE 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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