Correlation Between KENYA ORCHARDS and SASINI
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By analyzing existing cross correlation between KENYA ORCHARDS LTD and SASINI LTD, you can compare the effects of market volatilities on KENYA ORCHARDS 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 ORCHARDS with a short position of SASINI. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA ORCHARDS and SASINI.
Diversification Opportunities for KENYA ORCHARDS and SASINI
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KENYA and SASINI is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding KENYA ORCHARDS LTD and SASINI LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASINI LTD 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 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 ORCHARDS i.e., KENYA ORCHARDS and SASINI go up and down completely randomly.
Pair Corralation between KENYA ORCHARDS and SASINI
Assuming the 90 days trading horizon KENYA ORCHARDS LTD is expected to generate 1.93 times more return on investment than SASINI. However, KENYA ORCHARDS is 1.93 times more volatile than SASINI LTD. It trades about 0.49 of its potential returns per unit of risk. SASINI LTD is currently generating about -0.08 per unit of risk. If you would invest 1,950 in KENYA ORCHARDS LTD on September 4, 2024 and sell it today you would earn a total of 5,050 from holding KENYA ORCHARDS LTD or generate 258.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
KENYA ORCHARDS LTD vs. SASINI LTD
Performance |
| Timeline |
| KENYA ORCHARDS LTD |
| SASINI LTD |
KENYA ORCHARDS and SASINI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENYA ORCHARDS and SASINI
The main advantage of trading using opposite KENYA ORCHARDS and SASINI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA ORCHARDS 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 ORCHARDS vs. EQUITY GROUP HOLDINGS | KENYA ORCHARDS vs. ABSA BANK OF | KENYA ORCHARDS vs. BRITISH AMERICAN TOBACCO | KENYA ORCHARDS vs. CO OPERATIVE BANK OF |
| SASINI vs. EQUITY GROUP HOLDINGS | SASINI vs. ABSA BANK OF | SASINI vs. BRITISH AMERICAN TOBACCO | SASINI vs. CO OPERATIVE BANK OF |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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