Correlation Between GUINNESS GHANA and AGRICULTURAL DEVELOPMENT
Can any of the company-specific risk be diversified away by investing in both GUINNESS 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 GUINNESS 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 GUINNESS GHANA BREWERIES and AGRICULTURAL DEVELOPMENT BANK, you can compare the effects of market volatilities on GUINNESS 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 GUINNESS GHANA with a short position of AGRICULTURAL DEVELOPMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINNESS GHANA and AGRICULTURAL DEVELOPMENT.
Diversification Opportunities for GUINNESS GHANA and AGRICULTURAL DEVELOPMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GUINNESS and AGRICULTURAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GUINNESS GHANA BREWERIES and AGRICULTURAL DEVELOPMENT BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTURAL DEVELOPMENT and GUINNESS 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 GUINNESS GHANA BREWERIES 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 GUINNESS GHANA i.e., GUINNESS GHANA and AGRICULTURAL DEVELOPMENT go up and down completely randomly.
Pair Corralation between GUINNESS GHANA and AGRICULTURAL DEVELOPMENT
If you would invest 550.00 in GUINNESS GHANA BREWERIES on November 29, 2024 and sell it today you would earn a total of 12.00 from holding GUINNESS GHANA BREWERIES or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUINNESS GHANA BREWERIES vs. AGRICULTURAL DEVELOPMENT BANK
Performance |
| Timeline |
| GUINNESS GHANA BREWERIES |
| AGRICULTURAL DEVELOPMENT |
GUINNESS GHANA and AGRICULTURAL DEVELOPMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINNESS GHANA and AGRICULTURAL DEVELOPMENT
The main advantage of trading using opposite GUINNESS GHANA and AGRICULTURAL DEVELOPMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINNESS 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.| GUINNESS GHANA vs. SIC INSURANCE ANY | GUINNESS GHANA vs. STANDARD CHARTERED BANK | GUINNESS GHANA vs. DIGICUT ADVERTISING PRODUCTION | GUINNESS GHANA vs. REPUBLIC BANK LIMITED |
| AGRICULTURAL DEVELOPMENT vs. GHANA MERCIAL BANK | AGRICULTURAL DEVELOPMENT vs. SIC INSURANCE ANY | AGRICULTURAL DEVELOPMENT vs. TRUST BANK LIMITED | AGRICULTURAL DEVELOPMENT vs. SAMBA FOODS 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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