Correlation Between JATU PLC and KENYA MERCIAL
Can any of the company-specific risk be diversified away by investing in both JATU PLC and KENYA MERCIAL 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 JATU PLC and KENYA MERCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JATU PLC and KENYA MERCIAL BANK, you can compare the effects of market volatilities on JATU PLC and KENYA MERCIAL 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 JATU PLC with a short position of KENYA MERCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JATU PLC and KENYA MERCIAL.
Diversification Opportunities for JATU PLC and KENYA MERCIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JATU and KENYA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JATU PLC and KENYA MERCIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENYA MERCIAL BANK and JATU PLC 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 JATU PLC are associated (or correlated) with KENYA MERCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENYA MERCIAL BANK has no effect on the direction of JATU PLC i.e., JATU PLC and KENYA MERCIAL go up and down completely randomly.
Pair Corralation between JATU PLC and KENYA MERCIAL
If you would invest 78,000 in KENYA MERCIAL BANK on October 24, 2024 and sell it today you would earn a total of 8,000 from holding KENYA MERCIAL BANK or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JATU PLC vs. KENYA MERCIAL BANK
Performance |
| Timeline |
| JATU PLC |
| KENYA MERCIAL BANK |
JATU PLC and KENYA MERCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JATU PLC and KENYA MERCIAL
The main advantage of trading using opposite JATU PLC and KENYA MERCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JATU PLC position performs unexpectedly, KENYA MERCIAL 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 KENYA MERCIAL will offset losses from the drop in KENYA MERCIAL's long position.| JATU PLC vs. MAENDELEO BANK PLC | JATU PLC vs. NATIONAL INVESTMENT PANY | JATU PLC vs. KENYA MERCIAL BANK | JATU PLC vs. AFRIPRISE INVESTMENT PLC |
| KENYA MERCIAL vs. MAENDELEO BANK PLC | KENYA MERCIAL vs. MWALIMU MERCIAL BANK | KENYA MERCIAL vs. SWISSPORT TANZANIA LTD | KENYA MERCIAL vs. NATIONAL INVESTMENT PANY |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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