Correlation Between AXAMANSARD INSURANCE and CHAMPION BREWERIES
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By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and CHAMPION BREWERIES PLC, you can compare the effects of market volatilities on AXAMANSARD INSURANCE and CHAMPION BREWERIES 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 AXAMANSARD INSURANCE with a short position of CHAMPION BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and CHAMPION BREWERIES.
Diversification Opportunities for AXAMANSARD INSURANCE and CHAMPION BREWERIES
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AXAMANSARD and CHAMPION is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and CHAMPION BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAMPION BREWERIES PLC and AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE PLC are associated (or correlated) with CHAMPION BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAMPION BREWERIES PLC has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and CHAMPION BREWERIES go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and CHAMPION BREWERIES
Assuming the 90 days trading horizon AXAMANSARD INSURANCE PLC is expected to generate 0.87 times more return on investment than CHAMPION BREWERIES. However, AXAMANSARD INSURANCE PLC is 1.15 times less risky than CHAMPION BREWERIES. It trades about 0.16 of its potential returns per unit of risk. CHAMPION BREWERIES PLC is currently generating about 0.12 per unit of risk. If you would invest 540.00 in AXAMANSARD INSURANCE PLC on September 3, 2024 and sell it today you would earn a total of 164.00 from holding AXAMANSARD INSURANCE PLC or generate 30.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXAMANSARD INSURANCE PLC vs. CHAMPION BREWERIES PLC
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| CHAMPION BREWERIES PLC |
AXAMANSARD INSURANCE and CHAMPION BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and CHAMPION BREWERIES
The main advantage of trading using opposite AXAMANSARD INSURANCE and CHAMPION BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE position performs unexpectedly, CHAMPION BREWERIES 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 CHAMPION BREWERIES will offset losses from the drop in CHAMPION BREWERIES's long position.| AXAMANSARD INSURANCE vs. GUINEA INSURANCE PLC | AXAMANSARD INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | AXAMANSARD INSURANCE vs. AIRTEL AFRICA PLC | AXAMANSARD INSURANCE vs. VFD GROUP |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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