Correlation Between KENYA RE and SASINI
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By analyzing existing cross correlation between KENYA RE INSURANCE PORATION and SASINI LTD, you can compare the effects of market volatilities on KENYA RE and SASINI 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 SASINI. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA RE and SASINI.
Diversification Opportunities for KENYA RE and SASINI
Very weak diversification
The 3 months correlation between KENYA and SASINI is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding KENYA RE INSURANCE PORATION and SASINI LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASINI LTD 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 SASINI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASINI LTD has no effect on the direction of KENYA RE i.e., KENYA RE and SASINI go up and down completely randomly.
Pair Corralation between KENYA RE and SASINI
Assuming the 90 days trading horizon KENYA RE INSURANCE PORATION is expected to generate 1.08 times more return on investment than SASINI. However, KENYA RE is 1.08 times more volatile than SASINI LTD. It trades about 0.03 of its potential returns per unit of risk. SASINI LTD is currently generating about -0.2 per unit of risk. If you would invest 110.00 in KENYA RE INSURANCE PORATION on September 12, 2024 and sell it today you would earn a total of 1.00 from holding KENYA RE INSURANCE PORATION or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
KENYA RE INSURANCE PORATION vs. SASINI LTD
Performance |
| Timeline |
| KENYA RE INSURANCE |
| SASINI LTD |
KENYA RE and SASINI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA RE and SASINI
The main advantage of trading using opposite KENYA RE and SASINI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA RE position performs unexpectedly, SASINI 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 SASINI will offset losses from the drop in SASINI's long position.| KENYA RE vs. NCBA GROUP PLC | KENYA RE vs. EAST AFRICAN BREWERIES | KENYA RE vs. STANDARD CHARTERED BANK | KENYA RE vs. ABSA BANK OF |
| SASINI vs. HOMEBOYZ ENTERTAINMENT PLC | SASINI vs. CENTUM INVESTMENT PANY | SASINI vs. EAST AFRICAN BREWERIES | SASINI vs. CIC INSURANCE GROUP |
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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