Correlation Between KENYA RE and EQUITY GROUP
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By analyzing existing cross correlation between KENYA RE INSURANCE PORATION and EQUITY GROUP HOLDINGS, you can compare the effects of market volatilities on KENYA RE and EQUITY GROUP 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 EQUITY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA RE and EQUITY GROUP.
Diversification Opportunities for KENYA RE and EQUITY GROUP
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between KENYA and EQUITY is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding KENYA RE INSURANCE PORATION and EQUITY GROUP HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUITY GROUP HOLDINGS 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 EQUITY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUITY GROUP HOLDINGS has no effect on the direction of KENYA RE i.e., KENYA RE and EQUITY GROUP go up and down completely randomly.
Pair Corralation between KENYA RE and EQUITY GROUP
Assuming the 90 days trading horizon KENYA RE is expected to generate 3.47 times less return on investment than EQUITY GROUP. In addition to that, KENYA RE is 2.0 times more volatile than EQUITY GROUP HOLDINGS. It trades about 0.01 of its total potential returns per unit of risk. EQUITY GROUP HOLDINGS is currently generating about 0.06 per unit of volatility. If you would invest 4,300 in EQUITY GROUP HOLDINGS on September 4, 2024 and sell it today you would earn a total of 205.00 from holding EQUITY GROUP HOLDINGS or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENYA RE INSURANCE PORATION vs. EQUITY GROUP HOLDINGS
Performance |
| Timeline |
| KENYA RE INSURANCE |
| EQUITY GROUP HOLDINGS |
KENYA RE and EQUITY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA RE and EQUITY GROUP
The main advantage of trading using opposite KENYA RE and EQUITY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA RE position performs unexpectedly, EQUITY GROUP 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 EQUITY GROUP will offset losses from the drop in EQUITY GROUP's long position.| KENYA RE vs. EQUITY GROUP HOLDINGS | KENYA RE vs. ABSA BANK OF | KENYA RE vs. BRITISH AMERICAN TOBACCO | KENYA RE vs. CO OPERATIVE BANK OF |
| EQUITY GROUP vs. HOME AFRIKA LTD | EQUITY GROUP vs. CIC INSURANCE GROUP | EQUITY GROUP vs. HOMEBOYZ ENTERTAINMENT PLC | EQUITY GROUP 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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