Correlation Between East Africa and ALTICE
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By analyzing existing cross correlation between East Africa Metals and ALTICE FRANCE S, you can compare the effects of market volatilities on East Africa and ALTICE 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 Africa with a short position of ALTICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Africa and ALTICE.
Diversification Opportunities for East Africa and ALTICE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between East and ALTICE is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding East Africa Metals and ALTICE FRANCE S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTICE FRANCE S and East Africa 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 Africa Metals are associated (or correlated) with ALTICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTICE FRANCE S has no effect on the direction of East Africa i.e., East Africa and ALTICE go up and down completely randomly.
Pair Corralation between East Africa and ALTICE
Assuming the 90 days horizon East Africa Metals is expected to generate 0.77 times more return on investment than ALTICE. However, East Africa Metals is 1.3 times less risky than ALTICE. It trades about 0.08 of its potential returns per unit of risk. ALTICE FRANCE S is currently generating about 0.05 per unit of risk. If you would invest 1.10 in East Africa Metals on August 31, 2024 and sell it today you would earn a total of 9.90 from holding East Africa Metals or generate 900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 71.05% |
| Values | Daily Returns |
East Africa Metals vs. ALTICE FRANCE S
Performance |
| Timeline |
| East Africa Metals |
| ALTICE FRANCE S |
East Africa and ALTICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Africa and ALTICE
The main advantage of trading using opposite East Africa and ALTICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Africa position performs unexpectedly, ALTICE 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 ALTICE will offset losses from the drop in ALTICE's long position.| East Africa vs. South32 Limited | East Africa vs. NioCorp Developments Ltd | East Africa vs. HUMANA INC | East Africa vs. SCOR PK |
| ALTICE vs. Cedar Realty Trust | ALTICE vs. Kite Realty Group | ALTICE vs. Inflection Point Acquisition | ALTICE vs. Equinix |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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