Correlation Between KENYA MERCIAL and TANZANIA CIGARETTE
Can any of the company-specific risk be diversified away by investing in both KENYA MERCIAL and TANZANIA CIGARETTE 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 TANZANIA CIGARETTE 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 TANZANIA CIGARETTE LTD, you can compare the effects of market volatilities on KENYA MERCIAL and TANZANIA CIGARETTE 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 TANZANIA CIGARETTE. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA MERCIAL and TANZANIA CIGARETTE.
Diversification Opportunities for KENYA MERCIAL and TANZANIA CIGARETTE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KENYA and TANZANIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KENYA MERCIAL BANK and TANZANIA CIGARETTE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TANZANIA CIGARETTE LTD 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 TANZANIA CIGARETTE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TANZANIA CIGARETTE LTD has no effect on the direction of KENYA MERCIAL i.e., KENYA MERCIAL and TANZANIA CIGARETTE go up and down completely randomly.
Pair Corralation between KENYA MERCIAL and TANZANIA CIGARETTE
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 |
KENYA MERCIAL BANK vs. TANZANIA CIGARETTE LTD
Performance |
| Timeline |
| KENYA MERCIAL BANK |
| TANZANIA CIGARETTE LTD |
KENYA MERCIAL and TANZANIA CIGARETTE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA MERCIAL and TANZANIA CIGARETTE
The main advantage of trading using opposite KENYA MERCIAL and TANZANIA CIGARETTE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA MERCIAL position performs unexpectedly, TANZANIA CIGARETTE 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 TANZANIA CIGARETTE will offset losses from the drop in TANZANIA CIGARETTE's long position.| KENYA MERCIAL vs. MAENDELEO BANK PLC | KENYA MERCIAL vs. MWALIMU MERCIAL BANK | KENYA MERCIAL vs. SWISSPORT TANZANIA LTD | KENYA MERCIAL vs. NATIONAL INVESTMENT PANY |
| TANZANIA CIGARETTE vs. NATIONAL INVESTMENT PANY | TANZANIA CIGARETTE vs. NATIONAL MICROFINANCE BANK | TANZANIA CIGARETTE vs. MWALIMU MERCIAL BANK | TANZANIA CIGARETTE vs. MKOMBOZI MERCIAL BANK |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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