Correlation Between LONGHORN PUBLISHERS and ABSA NEW
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By analyzing existing cross correlation between LONGHORN PUBLISHERS LTD and ABSA NEW GOLD, you can compare the effects of market volatilities on LONGHORN PUBLISHERS and ABSA NEW 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 LONGHORN PUBLISHERS with a short position of ABSA NEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of LONGHORN PUBLISHERS and ABSA NEW.
Diversification Opportunities for LONGHORN PUBLISHERS and ABSA NEW
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between LONGHORN and ABSA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding LONGHORN PUBLISHERS LTD and ABSA NEW GOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABSA NEW GOLD and LONGHORN PUBLISHERS 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 LONGHORN PUBLISHERS LTD are associated (or correlated) with ABSA NEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABSA NEW GOLD has no effect on the direction of LONGHORN PUBLISHERS i.e., LONGHORN PUBLISHERS and ABSA NEW go up and down completely randomly.
Pair Corralation between LONGHORN PUBLISHERS and ABSA NEW
Assuming the 90 days trading horizon LONGHORN PUBLISHERS LTD is expected to under-perform the ABSA NEW. In addition to that, LONGHORN PUBLISHERS is 3.55 times more volatile than ABSA NEW GOLD. It trades about -0.01 of its total potential returns per unit of risk. ABSA NEW GOLD is currently generating about 0.21 per unit of volatility. If you would invest 302,500 in ABSA NEW GOLD on September 5, 2024 and sell it today you would earn a total of 19,500 from holding ABSA NEW GOLD or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
LONGHORN PUBLISHERS LTD vs. ABSA NEW GOLD
Performance |
| Timeline |
| LONGHORN PUBLISHERS LTD |
| ABSA NEW GOLD |
LONGHORN PUBLISHERS and ABSA NEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LONGHORN PUBLISHERS and ABSA NEW
The main advantage of trading using opposite LONGHORN PUBLISHERS and ABSA NEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LONGHORN PUBLISHERS position performs unexpectedly, ABSA NEW 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 ABSA NEW will offset losses from the drop in ABSA NEW's long position.| LONGHORN PUBLISHERS vs. EQUITY GROUP HOLDINGS | LONGHORN PUBLISHERS vs. BRITISH AMERICAN TOBACCO | LONGHORN PUBLISHERS vs. CO OPERATIVE BANK OF | LONGHORN PUBLISHERS vs. ABSA NEW GOLD |
| ABSA NEW vs. EQUITY GROUP HOLDINGS | ABSA NEW vs. LONGHORN PUBLISHERS LTD | ABSA NEW vs. SAFARICOM PLC | ABSA NEW vs. ABSA 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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