Correlation Between KENYA MERCIAL and YETU MICROFINANCE
Can any of the company-specific risk be diversified away by investing in both KENYA MERCIAL and YETU MICROFINANCE 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 YETU MICROFINANCE 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 YETU MICROFINANCE PLC, you can compare the effects of market volatilities on KENYA MERCIAL and YETU MICROFINANCE 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 YETU MICROFINANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA MERCIAL and YETU MICROFINANCE.
Diversification Opportunities for KENYA MERCIAL and YETU MICROFINANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KENYA and YETU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KENYA MERCIAL BANK and YETU MICROFINANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YETU MICROFINANCE PLC 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 YETU MICROFINANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YETU MICROFINANCE PLC has no effect on the direction of KENYA MERCIAL i.e., KENYA MERCIAL and YETU MICROFINANCE go up and down completely randomly.
Pair Corralation between KENYA MERCIAL and YETU MICROFINANCE
If you would invest 71,000 in KENYA MERCIAL BANK on October 24, 2024 and sell it today you would earn a total of 15,000 from holding KENYA MERCIAL BANK or generate 21.13% 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. YETU MICROFINANCE PLC
Performance |
| Timeline |
| KENYA MERCIAL BANK |
| YETU MICROFINANCE PLC |
KENYA MERCIAL and YETU MICROFINANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA MERCIAL and YETU MICROFINANCE
The main advantage of trading using opposite KENYA MERCIAL and YETU MICROFINANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA MERCIAL position performs unexpectedly, YETU MICROFINANCE 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 YETU MICROFINANCE will offset losses from the drop in YETU MICROFINANCE's long position.| KENYA MERCIAL vs. NATION MEDIA GROUP | KENYA MERCIAL vs. MKOMBOZI MERCIAL BANK | KENYA MERCIAL vs. NATIONAL INVESTMENT PANY | KENYA MERCIAL vs. EAST AFRICAN BREWERIES |
| YETU MICROFINANCE vs. NATION MEDIA GROUP | YETU MICROFINANCE vs. MKOMBOZI MERCIAL BANK | YETU MICROFINANCE vs. NATIONAL INVESTMENT PANY | YETU MICROFINANCE vs. EAST AFRICAN BREWERIES |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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