Correlation Between KENYA RE and NATION MEDIA
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By analyzing existing cross correlation between KENYA RE INSURANCE PORATION and NATION MEDIA GROUP, you can compare the effects of market volatilities on KENYA RE and NATION MEDIA 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 NATION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA RE and NATION MEDIA.
Diversification Opportunities for KENYA RE and NATION MEDIA
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KENYA and NATION is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding KENYA RE INSURANCE PORATION and NATION MEDIA GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATION MEDIA GROUP 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 NATION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATION MEDIA GROUP has no effect on the direction of KENYA RE i.e., KENYA RE and NATION MEDIA go up and down completely randomly.
Pair Corralation between KENYA RE and NATION MEDIA
Assuming the 90 days trading horizon KENYA RE INSURANCE PORATION is expected to under-perform the NATION MEDIA. In addition to that, KENYA RE is 1.4 times more volatile than NATION MEDIA GROUP. It trades about -0.01 of its total potential returns per unit of risk. NATION MEDIA GROUP is currently generating about -0.01 per unit of volatility. If you would invest 1,515 in NATION MEDIA GROUP on September 3, 2024 and sell it today you would lose (320.00) from holding NATION MEDIA GROUP or give up 21.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENYA RE INSURANCE PORATION vs. NATION MEDIA GROUP
Performance |
| Timeline |
| KENYA RE INSURANCE |
| NATION MEDIA GROUP |
KENYA RE and NATION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA RE and NATION MEDIA
The main advantage of trading using opposite KENYA RE and NATION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA RE position performs unexpectedly, NATION MEDIA 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 NATION MEDIA will offset losses from the drop in NATION MEDIA'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 |
| NATION MEDIA vs. CENTUM INVESTMENT PANY | NATION MEDIA vs. ABSA BANK OF | NATION MEDIA vs. HOME AFRIKA LTD | NATION MEDIA vs. HOMEBOYZ ENTERTAINMENT PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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