Correlation Between MCB GROUP and AFRICA CLEAN
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By analyzing existing cross correlation between MCB GROUP LTD and AFRICA CLEAN ENERGY, you can compare the effects of market volatilities on MCB GROUP and AFRICA CLEAN 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 MCB GROUP with a short position of AFRICA CLEAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCB GROUP and AFRICA CLEAN.
Diversification Opportunities for MCB GROUP and AFRICA CLEAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MCB and AFRICA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MCB GROUP LTD and AFRICA CLEAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFRICA CLEAN ENERGY and MCB GROUP 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 MCB GROUP LTD are associated (or correlated) with AFRICA CLEAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFRICA CLEAN ENERGY has no effect on the direction of MCB GROUP i.e., MCB GROUP and AFRICA CLEAN go up and down completely randomly.
Pair Corralation between MCB GROUP and AFRICA CLEAN
Assuming the 90 days trading horizon MCB GROUP LTD is expected to generate 1.11 times more return on investment than AFRICA CLEAN. However, MCB GROUP is 1.11 times more volatile than AFRICA CLEAN ENERGY. It trades about 0.01 of its potential returns per unit of risk. AFRICA CLEAN ENERGY is currently generating about -0.05 per unit of risk. If you would invest 1,015 in MCB GROUP LTD on August 28, 2024 and sell it today you would earn a total of 35.00 from holding MCB GROUP LTD or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.99% |
| Values | Daily Returns |
MCB GROUP LTD vs. AFRICA CLEAN ENERGY
Performance |
| Timeline |
| MCB GROUP LTD |
| AFRICA CLEAN ENERGY |
MCB GROUP and AFRICA CLEAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCB GROUP and AFRICA CLEAN
The main advantage of trading using opposite MCB GROUP and AFRICA CLEAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCB GROUP position performs unexpectedly, AFRICA CLEAN 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 AFRICA CLEAN will offset losses from the drop in AFRICA CLEAN's long position.| MCB GROUP vs. LOTTOTECH LTD | MCB GROUP vs. NEW MAURITIUS HOTELS | MCB GROUP vs. MIWA SUGAR LIMITED | MCB GROUP vs. CAVELL TOURISTIC INVESTMENTS |
| AFRICA CLEAN vs. MCB GROUP LTD | AFRICA CLEAN vs. LOTTOTECH LTD | AFRICA CLEAN vs. NEW MAURITIUS HOTELS | AFRICA CLEAN vs. MIWA SUGAR LIMITED |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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