Correlation Between HOME AFRIKA and CENTUM INVESTMENT
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By analyzing existing cross correlation between HOME AFRIKA LTD and CENTUM INVESTMENT PANY, you can compare the effects of market volatilities on HOME AFRIKA and CENTUM INVESTMENT 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 HOME AFRIKA with a short position of CENTUM INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOME AFRIKA and CENTUM INVESTMENT.
Diversification Opportunities for HOME AFRIKA and CENTUM INVESTMENT
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HOME and CENTUM is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding HOME AFRIKA LTD and CENTUM INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTUM INVESTMENT PANY and HOME AFRIKA 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 HOME AFRIKA LTD are associated (or correlated) with CENTUM INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTUM INVESTMENT PANY has no effect on the direction of HOME AFRIKA i.e., HOME AFRIKA and CENTUM INVESTMENT go up and down completely randomly.
Pair Corralation between HOME AFRIKA and CENTUM INVESTMENT
Assuming the 90 days trading horizon HOME AFRIKA LTD is expected to generate 1.85 times more return on investment than CENTUM INVESTMENT. However, HOME AFRIKA is 1.85 times more volatile than CENTUM INVESTMENT PANY. It trades about 0.09 of its potential returns per unit of risk. CENTUM INVESTMENT PANY is currently generating about 0.06 per unit of risk. If you would invest 32.00 in HOME AFRIKA LTD on November 3, 2024 and sell it today you would earn a total of 37.00 from holding HOME AFRIKA LTD or generate 115.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOME AFRIKA LTD vs. CENTUM INVESTMENT PANY
Performance |
| Timeline |
| HOME AFRIKA LTD |
| CENTUM INVESTMENT PANY |
HOME AFRIKA and CENTUM INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOME AFRIKA and CENTUM INVESTMENT
The main advantage of trading using opposite HOME AFRIKA and CENTUM INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOME AFRIKA position performs unexpectedly, CENTUM INVESTMENT 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 CENTUM INVESTMENT will offset losses from the drop in CENTUM INVESTMENT's long position.| HOME AFRIKA vs. EQUITY GROUP HOLDINGS | HOME AFRIKA vs. LONGHORN PUBLISHERS LTD | HOME AFRIKA vs. ABSA BANK OF | HOME AFRIKA vs. KENGEN PLC |
| CENTUM INVESTMENT vs. EQUITY GROUP HOLDINGS | CENTUM INVESTMENT vs. LONGHORN PUBLISHERS LTD | CENTUM INVESTMENT vs. ABSA BANK OF | CENTUM INVESTMENT vs. KENGEN 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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