Correlation Between KENYA ORCHARDS and EQUITY GROUP
Can any of the company-specific risk be diversified away by investing in both KENYA ORCHARDS and EQUITY GROUP 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 ORCHARDS and EQUITY GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENYA ORCHARDS LTD and EQUITY GROUP HOLDINGS, you can compare the effects of market volatilities on KENYA ORCHARDS 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 ORCHARDS with a short position of EQUITY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA ORCHARDS and EQUITY GROUP.
Diversification Opportunities for KENYA ORCHARDS and EQUITY GROUP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KENYA and EQUITY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KENYA ORCHARDS LTD 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 ORCHARDS 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 ORCHARDS LTD 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 ORCHARDS i.e., KENYA ORCHARDS and EQUITY GROUP go up and down completely randomly.
Pair Corralation between KENYA ORCHARDS and EQUITY GROUP
If you would invest 0.00 in EQUITY GROUP HOLDINGS on September 12, 2024 and sell it today you would earn a total of 0.00 from holding EQUITY GROUP HOLDINGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
KENYA ORCHARDS LTD vs. EQUITY GROUP HOLDINGS
Performance |
| Timeline |
| KENYA ORCHARDS LTD |
| EQUITY GROUP HOLDINGS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
KENYA ORCHARDS and EQUITY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA ORCHARDS and EQUITY GROUP
The main advantage of trading using opposite KENYA ORCHARDS and EQUITY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA ORCHARDS 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 ORCHARDS vs. NCBA GROUP PLC | KENYA ORCHARDS vs. EAST AFRICAN BREWERIES | KENYA ORCHARDS vs. STANDARD CHARTERED BANK | KENYA ORCHARDS vs. ABSA BANK OF |
| EQUITY GROUP vs. CARBACID INVESTMENTS LTD | EQUITY GROUP vs. UCHUMI SUPERMARKET PLC | EQUITY GROUP vs. EAST AFRICAN BREWERIES | EQUITY GROUP vs. Kenya Reinsurance |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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