Correlation Between KENYA MERCIAL and MWALIMU MERCIAL
Can any of the company-specific risk be diversified away by investing in both KENYA MERCIAL and MWALIMU 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 KENYA MERCIAL and MWALIMU MERCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENYA MERCIAL BANK and MWALIMU MERCIAL BANK, you can compare the effects of market volatilities on KENYA MERCIAL and MWALIMU 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 KENYA MERCIAL with a short position of MWALIMU MERCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA MERCIAL and MWALIMU MERCIAL.
Diversification Opportunities for KENYA MERCIAL and MWALIMU MERCIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KENYA and MWALIMU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KENYA MERCIAL BANK and MWALIMU MERCIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MWALIMU MERCIAL BANK and KENYA MERCIAL 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 KENYA MERCIAL BANK are associated (or correlated) with MWALIMU MERCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MWALIMU MERCIAL BANK has no effect on the direction of KENYA MERCIAL i.e., KENYA MERCIAL and MWALIMU MERCIAL go up and down completely randomly.
Pair Corralation between KENYA MERCIAL and MWALIMU MERCIAL
If you would invest 82,000 in KENYA MERCIAL BANK on October 26, 2024 and sell it today you would earn a total of 6,000 from holding KENYA MERCIAL BANK or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENYA MERCIAL BANK vs. MWALIMU MERCIAL BANK
Performance |
| Timeline |
| KENYA MERCIAL BANK |
| MWALIMU MERCIAL BANK |
KENYA MERCIAL and MWALIMU MERCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA MERCIAL and MWALIMU MERCIAL
The main advantage of trading using opposite KENYA MERCIAL and MWALIMU MERCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA MERCIAL position performs unexpectedly, MWALIMU 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 MWALIMU MERCIAL will offset losses from the drop in MWALIMU MERCIAL's long position.| KENYA MERCIAL vs. YETU MICROFINANCE PLC | KENYA MERCIAL vs. MUCOBA BANK PLC | KENYA MERCIAL vs. TANZANIA PORTLAND CEMENT | KENYA MERCIAL vs. TOL GASES LTD |
| MWALIMU MERCIAL vs. YETU MICROFINANCE PLC | MWALIMU MERCIAL vs. MUCOBA BANK PLC | MWALIMU MERCIAL vs. TANZANIA PORTLAND CEMENT | MWALIMU MERCIAL vs. TOL GASES LTD |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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