Correlation Between Standard Bank and Libstar Holdings
Specify exactly 2 symbols:
By analyzing existing cross correlation between Standard Bank Oil and Libstar Holdings, you can compare the effects of market volatilities on Standard Bank and Libstar Holdings 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 Standard Bank with a short position of Libstar Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standard Bank and Libstar Holdings.
Diversification Opportunities for Standard Bank and Libstar Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Standard and Libstar is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Standard Bank Oil and Libstar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libstar Holdings and Standard Bank 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 Standard Bank Oil are associated (or correlated) with Libstar Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libstar Holdings has no effect on the direction of Standard Bank i.e., Standard Bank and Libstar Holdings go up and down completely randomly.
Pair Corralation between Standard Bank and Libstar Holdings
Assuming the 90 days trading horizon Standard Bank is expected to generate 2.25 times less return on investment than Libstar Holdings. But when comparing it to its historical volatility, Standard Bank Oil is 3.8 times less risky than Libstar Holdings. It trades about 0.04 of its potential returns per unit of risk. Libstar Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 38,133 in Libstar Holdings on September 12, 2024 and sell it today you would earn a total of 3,467 from holding Libstar Holdings or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standard Bank Oil vs. Libstar Holdings
Performance |
| Timeline |
| Standard Bank Oil |
| Libstar Holdings |
Standard Bank and Libstar Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standard Bank and Libstar Holdings
The main advantage of trading using opposite Standard Bank and Libstar Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Bank position performs unexpectedly, Libstar Holdings 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 Libstar Holdings will offset losses from the drop in Libstar Holdings' long position.| Standard Bank vs. Centaur Bci Balanced | Standard Bank vs. Europa Metals | Standard Bank vs. British American Tobacco | Standard Bank vs. Kap Industrial Holdings |
| Libstar Holdings vs. HomeChoice Investments | Libstar Holdings vs. Standard Bank Group | Libstar Holdings vs. Deneb Investments | Libstar Holdings vs. Hosken Consolidated Investments |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |