Correlation Between JATU PLC and MAENDELEO BANK
Can any of the company-specific risk be diversified away by investing in both JATU PLC and MAENDELEO BANK 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 MAENDELEO BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JATU PLC and MAENDELEO BANK PLC, you can compare the effects of market volatilities on JATU PLC and MAENDELEO BANK 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 MAENDELEO BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of JATU PLC and MAENDELEO BANK.
Diversification Opportunities for JATU PLC and MAENDELEO BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JATU and MAENDELEO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JATU PLC and MAENDELEO BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAENDELEO BANK PLC 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 MAENDELEO BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAENDELEO BANK PLC has no effect on the direction of JATU PLC i.e., JATU PLC and MAENDELEO BANK go up and down completely randomly.
Pair Corralation between JATU PLC and MAENDELEO BANK
If you would invest 31,000 in MAENDELEO BANK PLC on October 25, 2024 and sell it today you would earn a total of 0.00 from holding MAENDELEO BANK PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JATU PLC vs. MAENDELEO BANK PLC
Performance |
| Timeline |
| JATU PLC |
| MAENDELEO BANK PLC |
JATU PLC and MAENDELEO BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JATU PLC and MAENDELEO BANK
The main advantage of trading using opposite JATU PLC and MAENDELEO BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JATU PLC position performs unexpectedly, MAENDELEO BANK 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 MAENDELEO BANK will offset losses from the drop in MAENDELEO BANK'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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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