Correlation Between EQUITY GROUP and ABSA NEW
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By analyzing existing cross correlation between EQUITY GROUP HOLDINGS and ABSA NEW GOLD, you can compare the effects of market volatilities on EQUITY GROUP and ABSA NEW 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 ABSA NEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of EQUITY GROUP and ABSA NEW.
Diversification Opportunities for EQUITY GROUP and ABSA NEW
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EQUITY and ABSA is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding EQUITY GROUP HOLDINGS and ABSA NEW GOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABSA NEW GOLD 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 ABSA NEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABSA NEW GOLD has no effect on the direction of EQUITY GROUP i.e., EQUITY GROUP and ABSA NEW go up and down completely randomly.
Pair Corralation between EQUITY GROUP and ABSA NEW
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 | 100.0% |
| Values | Daily Returns |
EQUITY GROUP HOLDINGS vs. ABSA NEW GOLD
Performance |
| Timeline |
| EQUITY GROUP HOLDINGS |
| ABSA NEW GOLD |
EQUITY GROUP and ABSA NEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EQUITY GROUP and ABSA NEW
The main advantage of trading using opposite EQUITY GROUP and ABSA NEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQUITY GROUP position performs unexpectedly, ABSA NEW 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 ABSA NEW will offset losses from the drop in ABSA NEW'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 |
| ABSA NEW vs. KENYA RE INSURANCE PORATION | ABSA NEW vs. TOTALENERGIES MARKETING KENYA | ABSA NEW vs. HOME AFRIKA LTD | ABSA NEW vs. CO OPERATIVE 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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