Correlation Between KENYA RE and DIAMOND TRUST
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By analyzing existing cross correlation between KENYA RE INSURANCE PORATION and DIAMOND TRUST BANK, you can compare the effects of market volatilities on KENYA RE and DIAMOND TRUST 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 RE with a short position of DIAMOND TRUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA RE and DIAMOND TRUST.
Diversification Opportunities for KENYA RE and DIAMOND TRUST
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KENYA and DIAMOND is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding KENYA RE INSURANCE PORATION and DIAMOND TRUST BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIAMOND TRUST BANK and KENYA RE 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 RE INSURANCE PORATION are associated (or correlated) with DIAMOND TRUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIAMOND TRUST BANK has no effect on the direction of KENYA RE i.e., KENYA RE and DIAMOND TRUST go up and down completely randomly.
Pair Corralation between KENYA RE and DIAMOND TRUST
Assuming the 90 days trading horizon KENYA RE INSURANCE PORATION is expected to under-perform the DIAMOND TRUST. In addition to that, KENYA RE is 1.77 times more volatile than DIAMOND TRUST BANK. It trades about -0.01 of its total potential returns per unit of risk. DIAMOND TRUST BANK is currently generating about 0.02 per unit of volatility. If you would invest 4,830 in DIAMOND TRUST BANK on September 3, 2024 and sell it today you would earn a total of 520.00 from holding DIAMOND TRUST BANK or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENYA RE INSURANCE PORATION vs. DIAMOND TRUST BANK
Performance |
| Timeline |
| KENYA RE INSURANCE |
| DIAMOND TRUST BANK |
KENYA RE and DIAMOND TRUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA RE and DIAMOND TRUST
The main advantage of trading using opposite KENYA RE and DIAMOND TRUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA RE position performs unexpectedly, DIAMOND TRUST 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 DIAMOND TRUST will offset losses from the drop in DIAMOND TRUST's long position.| KENYA RE vs. UCHUMI SUPERMARKET PLC | KENYA RE vs. CENTUM INVESTMENT PANY | KENYA RE vs. STANDARD CHARTERED BANK | KENYA RE vs. DIAMOND TRUST BANK |
| DIAMOND TRUST vs. KENYA RE INSURANCE PORATION | DIAMOND TRUST vs. CIC INSURANCE GROUP | DIAMOND TRUST vs. HOMEBOYZ ENTERTAINMENT PLC | DIAMOND TRUST vs. CARBACID INVESTMENTS 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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