Correlation Between GREENWICH ASSET and AIRTEL AFRICA
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By analyzing existing cross correlation between GREENWICH ASSET ETF and AIRTEL AFRICA PLC, you can compare the effects of market volatilities on GREENWICH ASSET 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 GREENWICH ASSET with a short position of AIRTEL AFRICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENWICH ASSET and AIRTEL AFRICA.
Diversification Opportunities for GREENWICH ASSET and AIRTEL AFRICA
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GREENWICH and AIRTEL is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GREENWICH ASSET ETF 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 GREENWICH ASSET 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 GREENWICH ASSET ETF 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 GREENWICH ASSET i.e., GREENWICH ASSET and AIRTEL AFRICA go up and down completely randomly.
Pair Corralation between GREENWICH ASSET and AIRTEL AFRICA
Assuming the 90 days trading horizon GREENWICH ASSET ETF is expected to under-perform the AIRTEL AFRICA. In addition to that, GREENWICH ASSET is 5.04 times more volatile than AIRTEL AFRICA PLC. It trades about -0.24 of its total potential returns per unit of risk. AIRTEL AFRICA PLC is currently generating about -0.21 per unit of volatility. If you would invest 220,000 in AIRTEL AFRICA PLC on September 6, 2024 and sell it today you would lose (4,310) from holding AIRTEL AFRICA PLC or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENWICH ASSET ETF vs. AIRTEL AFRICA PLC
Performance |
| Timeline |
| GREENWICH ASSET ETF |
| AIRTEL AFRICA PLC |
GREENWICH ASSET and AIRTEL AFRICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENWICH ASSET and AIRTEL AFRICA
The main advantage of trading using opposite GREENWICH ASSET and AIRTEL AFRICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENWICH ASSET 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.| GREENWICH ASSET vs. VETIVA GRIFFIN 30 | GREENWICH ASSET vs. VETIVA BANKING ETF | GREENWICH ASSET vs. STANBIC IBTC ETF | GREENWICH ASSET vs. LOTUS HALAL EQUITY |
| AIRTEL AFRICA vs. GUINEA INSURANCE PLC | AIRTEL AFRICA vs. VFD GROUP | AIRTEL AFRICA vs. VETIVA S P | AIRTEL AFRICA vs. GREENWICH ASSET ETF |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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