Correlation Between ECOBANK GHANA and AGRICULTURAL DEVELOPMENT
Can any of the company-specific risk be diversified away by investing in both ECOBANK GHANA and AGRICULTURAL DEVELOPMENT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ECOBANK GHANA and AGRICULTURAL DEVELOPMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECOBANK GHANA LIMITED and AGRICULTURAL DEVELOPMENT BANK, you can compare the effects of market volatilities on ECOBANK GHANA and AGRICULTURAL DEVELOPMENT 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 ECOBANK GHANA with a short position of AGRICULTURAL DEVELOPMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECOBANK GHANA and AGRICULTURAL DEVELOPMENT.
Diversification Opportunities for ECOBANK GHANA and AGRICULTURAL DEVELOPMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ECOBANK and AGRICULTURAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ECOBANK GHANA LIMITED and AGRICULTURAL DEVELOPMENT BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTURAL DEVELOPMENT and ECOBANK GHANA 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 ECOBANK GHANA LIMITED are associated (or correlated) with AGRICULTURAL DEVELOPMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTURAL DEVELOPMENT has no effect on the direction of ECOBANK GHANA i.e., ECOBANK GHANA and AGRICULTURAL DEVELOPMENT go up and down completely randomly.
Pair Corralation between ECOBANK GHANA and AGRICULTURAL DEVELOPMENT
If you would invest 664.00 in ECOBANK GHANA LIMITED on August 27, 2024 and sell it today you would lose (14.00) from holding ECOBANK GHANA LIMITED or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECOBANK GHANA LIMITED vs. AGRICULTURAL DEVELOPMENT BANK
Performance |
| Timeline |
| ECOBANK GHANA LIMITED |
| AGRICULTURAL DEVELOPMENT |
ECOBANK GHANA and AGRICULTURAL DEVELOPMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECOBANK GHANA and AGRICULTURAL DEVELOPMENT
The main advantage of trading using opposite ECOBANK GHANA and AGRICULTURAL DEVELOPMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECOBANK GHANA position performs unexpectedly, AGRICULTURAL DEVELOPMENT 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 AGRICULTURAL DEVELOPMENT will offset losses from the drop in AGRICULTURAL DEVELOPMENT's long position.| ECOBANK GHANA vs. TRUST BANK LIMITED | ECOBANK GHANA vs. AGRICULTURAL DEVELOPMENT BANK | ECOBANK GHANA vs. STANDARD CHARTERED BANK | ECOBANK GHANA vs. GUINNESS GHANA BREWERIES |
| AGRICULTURAL DEVELOPMENT vs. ACCESS BANK GHANA | AGRICULTURAL DEVELOPMENT vs. STANDARD CHARTERED BANK | AGRICULTURAL DEVELOPMENT vs. SAMBA FOODS LIMITED | AGRICULTURAL DEVELOPMENT vs. ECOBANK GHANA LIMITED |
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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