Correlation Between FINCORP INVESTMENT and AFREXIMBANK
Can any of the company-specific risk be diversified away by investing in both FINCORP INVESTMENT and AFREXIMBANK 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 FINCORP INVESTMENT and AFREXIMBANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FINCORP INVESTMENT LTD and AFREXIMBANK, you can compare the effects of market volatilities on FINCORP INVESTMENT and AFREXIMBANK 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 FINCORP INVESTMENT with a short position of AFREXIMBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of FINCORP INVESTMENT and AFREXIMBANK.
Diversification Opportunities for FINCORP INVESTMENT and AFREXIMBANK
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FINCORP and AFREXIMBANK is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding FINCORP INVESTMENT LTD and AFREXIMBANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFREXIMBANK and FINCORP INVESTMENT 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 FINCORP INVESTMENT LTD are associated (or correlated) with AFREXIMBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFREXIMBANK has no effect on the direction of FINCORP INVESTMENT i.e., FINCORP INVESTMENT and AFREXIMBANK go up and down completely randomly.
Pair Corralation between FINCORP INVESTMENT and AFREXIMBANK
Assuming the 90 days trading horizon FINCORP INVESTMENT LTD is expected to generate 4.87 times more return on investment than AFREXIMBANK. However, FINCORP INVESTMENT is 4.87 times more volatile than AFREXIMBANK. It trades about 0.44 of its potential returns per unit of risk. AFREXIMBANK is currently generating about 0.0 per unit of risk. If you would invest 1,790 in FINCORP INVESTMENT LTD on January 4, 2025 and sell it today you would earn a total of 235.00 from holding FINCORP INVESTMENT LTD or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FINCORP INVESTMENT LTD vs. AFREXIMBANK
Performance |
| Timeline |
| FINCORP INVESTMENT LTD |
| AFREXIMBANK |
FINCORP INVESTMENT and AFREXIMBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FINCORP INVESTMENT and AFREXIMBANK
The main advantage of trading using opposite FINCORP INVESTMENT and AFREXIMBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FINCORP INVESTMENT position performs unexpectedly, AFREXIMBANK 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 AFREXIMBANK will offset losses from the drop in AFREXIMBANK's long position.| FINCORP INVESTMENT vs. MCB GROUP LIMITED | FINCORP INVESTMENT vs. COMPAGNIE IMMOBILI | FINCORP INVESTMENT vs. MCB GROUP LTD | FINCORP INVESTMENT vs. MUA LTD |
| AFREXIMBANK vs. QUALITY BEVERAGES LTD | AFREXIMBANK vs. FINCORP INVESTMENT LTD | AFREXIMBANK vs. HOTELEST LTD | AFREXIMBANK vs. AGAPE GLOBAL 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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