Correlation Between FIDSON HEALTHCARE and AIRTEL AFRICA
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By analyzing existing cross correlation between FIDSON HEALTHCARE PLC and AIRTEL AFRICA PLC, you can compare the effects of market volatilities on FIDSON HEALTHCARE and AIRTEL AFRICA 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 FIDSON HEALTHCARE with a short position of AIRTEL AFRICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDSON HEALTHCARE and AIRTEL AFRICA.
Diversification Opportunities for FIDSON HEALTHCARE and AIRTEL AFRICA
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FIDSON and AIRTEL is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding FIDSON HEALTHCARE PLC and AIRTEL AFRICA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRTEL AFRICA PLC and FIDSON HEALTHCARE 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 FIDSON HEALTHCARE PLC are associated (or correlated) with AIRTEL AFRICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRTEL AFRICA PLC has no effect on the direction of FIDSON HEALTHCARE i.e., FIDSON HEALTHCARE and AIRTEL AFRICA go up and down completely randomly.
Pair Corralation between FIDSON HEALTHCARE and AIRTEL AFRICA
Assuming the 90 days trading horizon FIDSON HEALTHCARE PLC is expected to generate 1.51 times more return on investment than AIRTEL AFRICA. However, FIDSON HEALTHCARE is 1.51 times more volatile than AIRTEL AFRICA PLC. It trades about 0.05 of its potential returns per unit of risk. AIRTEL AFRICA PLC is currently generating about 0.05 per unit of risk. If you would invest 863.00 in FIDSON HEALTHCARE PLC on September 12, 2024 and sell it today you would earn a total of 587.00 from holding FIDSON HEALTHCARE PLC or generate 68.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIDSON HEALTHCARE PLC vs. AIRTEL AFRICA PLC
Performance |
| Timeline |
| FIDSON HEALTHCARE PLC |
| AIRTEL AFRICA PLC |
FIDSON HEALTHCARE and AIRTEL AFRICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDSON HEALTHCARE and AIRTEL AFRICA
The main advantage of trading using opposite FIDSON HEALTHCARE and AIRTEL AFRICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDSON HEALTHCARE position performs unexpectedly, AIRTEL AFRICA 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 AFRICA will offset losses from the drop in AIRTEL AFRICA's long position.| FIDSON HEALTHCARE vs. STERLING FINANCIAL HOLDINGS | FIDSON HEALTHCARE vs. JAIZ BANK PLC | FIDSON HEALTHCARE vs. NEM INSURANCE PLC | FIDSON HEALTHCARE vs. MULTI TREX INTEGRATED FOODS |
| AIRTEL AFRICA vs. AIICO INSURANCE PLC | AIRTEL AFRICA vs. FIDSON HEALTHCARE PLC | AIRTEL AFRICA vs. NEM INSURANCE PLC | AIRTEL AFRICA vs. TRANSCORP HOTELS PLC |
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 Stocks Directory module to find actively traded stocks across global markets.
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