Correlation Between EQUITY GROUP and SASINI
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By analyzing existing cross correlation between EQUITY GROUP HOLDINGS and SASINI LTD, you can compare the effects of market volatilities on EQUITY GROUP and SASINI 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 SASINI. Check out your portfolio center. Please also check ongoing floating volatility patterns of EQUITY GROUP and SASINI.
Diversification Opportunities for EQUITY GROUP and SASINI
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EQUITY and SASINI is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding EQUITY GROUP HOLDINGS and SASINI LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASINI LTD 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 SASINI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASINI LTD has no effect on the direction of EQUITY GROUP i.e., EQUITY GROUP and SASINI go up and down completely randomly.
Pair Corralation between EQUITY GROUP and SASINI
Assuming the 90 days trading horizon EQUITY GROUP HOLDINGS is expected to generate 0.65 times more return on investment than SASINI. However, EQUITY GROUP HOLDINGS is 1.54 times less risky than SASINI. It trades about -0.16 of its potential returns per unit of risk. SASINI LTD is currently generating about -0.11 per unit of risk. If you would invest 4,725 in EQUITY GROUP HOLDINGS on September 4, 2024 and sell it today you would lose (220.00) from holding EQUITY GROUP HOLDINGS or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EQUITY GROUP HOLDINGS vs. SASINI LTD
Performance |
| Timeline |
| EQUITY GROUP HOLDINGS |
| SASINI LTD |
EQUITY GROUP and SASINI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EQUITY GROUP and SASINI
The main advantage of trading using opposite EQUITY GROUP and SASINI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQUITY GROUP position performs unexpectedly, SASINI 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 SASINI will offset losses from the drop in SASINI's long position.| EQUITY GROUP vs. HOME AFRIKA LTD | EQUITY GROUP vs. CIC INSURANCE GROUP | EQUITY GROUP vs. HOMEBOYZ ENTERTAINMENT PLC | EQUITY GROUP vs. CARBACID INVESTMENTS LTD |
| SASINI vs. EQUITY GROUP HOLDINGS | SASINI vs. ABSA BANK OF | SASINI vs. BRITISH AMERICAN TOBACCO | SASINI 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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