Correlation Between FDH BANK and AIRTEL MALAWI
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By analyzing existing cross correlation between FDH BANK PLC and AIRTEL MALAWI PLC, you can compare the effects of market volatilities on FDH BANK and AIRTEL MALAWI 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 FDH BANK with a short position of AIRTEL MALAWI. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDH BANK and AIRTEL MALAWI.
Diversification Opportunities for FDH BANK and AIRTEL MALAWI
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between FDH and AIRTEL is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding FDH BANK PLC and AIRTEL MALAWI PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRTEL MALAWI PLC and FDH 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 FDH BANK PLC are associated (or correlated) with AIRTEL MALAWI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRTEL MALAWI PLC has no effect on the direction of FDH BANK i.e., FDH BANK and AIRTEL MALAWI go up and down completely randomly.
Pair Corralation between FDH BANK and AIRTEL MALAWI
Assuming the 90 days trading horizon FDH BANK PLC is expected to generate 1.09 times more return on investment than AIRTEL MALAWI. However, FDH BANK is 1.09 times more volatile than AIRTEL MALAWI PLC. It trades about 0.2 of its potential returns per unit of risk. AIRTEL MALAWI PLC is currently generating about 0.04 per unit of risk. If you would invest 3,502 in FDH BANK PLC on November 2, 2024 and sell it today you would earn a total of 20,402 from holding FDH BANK PLC or generate 582.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FDH BANK PLC vs. AIRTEL MALAWI PLC
Performance |
| Timeline |
| FDH BANK PLC |
| AIRTEL MALAWI PLC |
FDH BANK and AIRTEL MALAWI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDH BANK and AIRTEL MALAWI
The main advantage of trading using opposite FDH BANK and AIRTEL MALAWI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDH BANK position performs unexpectedly, AIRTEL MALAWI 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 AIRTEL MALAWI will offset losses from the drop in AIRTEL MALAWI's long position.| FDH BANK vs. NATIONAL INVESTMENT TRUST | FDH BANK vs. NATIONAL BANK OF | FDH BANK vs. SUNBIRD HOTELS TOURISM | FDH BANK vs. MALAWI PROPERTY INVESTMENT |
| AIRTEL MALAWI vs. FDH BANK PLC | AIRTEL MALAWI vs. NATIONAL INVESTMENT TRUST | AIRTEL MALAWI vs. STANDARD BANK LIMITED | AIRTEL MALAWI vs. NBS BANK 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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