Correlation Between MTN GHANA and AGRICULTURAL DEVELOPMENT
Can any of the company-specific risk be diversified away by investing in both MTN GHANA and AGRICULTURAL DEVELOPMENT 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 MTN GHANA and AGRICULTURAL DEVELOPMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTN GHANA LTD and AGRICULTURAL DEVELOPMENT BANK, you can compare the effects of market volatilities on MTN GHANA and AGRICULTURAL DEVELOPMENT 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 MTN GHANA with a short position of AGRICULTURAL DEVELOPMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTN GHANA and AGRICULTURAL DEVELOPMENT.
Diversification Opportunities for MTN GHANA and AGRICULTURAL DEVELOPMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MTN and AGRICULTURAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MTN GHANA LTD and AGRICULTURAL DEVELOPMENT BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTURAL DEVELOPMENT and MTN GHANA 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 MTN GHANA LTD are associated (or correlated) with AGRICULTURAL DEVELOPMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTURAL DEVELOPMENT has no effect on the direction of MTN GHANA i.e., MTN GHANA and AGRICULTURAL DEVELOPMENT go up and down completely randomly.
Pair Corralation between MTN GHANA and AGRICULTURAL DEVELOPMENT
If you would invest 88.00 in MTN GHANA LTD on August 27, 2024 and sell it today you would earn a total of 148.00 from holding MTN GHANA LTD or generate 168.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTN GHANA LTD vs. AGRICULTURAL DEVELOPMENT BANK
Performance |
| Timeline |
| MTN GHANA LTD |
| AGRICULTURAL DEVELOPMENT |
MTN GHANA and AGRICULTURAL DEVELOPMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTN GHANA and AGRICULTURAL DEVELOPMENT
The main advantage of trading using opposite MTN GHANA and AGRICULTURAL DEVELOPMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTN GHANA position performs unexpectedly, AGRICULTURAL DEVELOPMENT 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 AGRICULTURAL DEVELOPMENT will offset losses from the drop in AGRICULTURAL DEVELOPMENT's long position.| MTN GHANA vs. SIC INSURANCE ANY | MTN GHANA vs. ECOBANK GHANA LIMITED | MTN GHANA vs. SAMBA FOODS LIMITED | MTN GHANA vs. GUINNESS GHANA BREWERIES |
| AGRICULTURAL DEVELOPMENT vs. ACCESS BANK GHANA | AGRICULTURAL DEVELOPMENT vs. STANDARD CHARTERED BANK | AGRICULTURAL DEVELOPMENT vs. SAMBA FOODS LIMITED | AGRICULTURAL DEVELOPMENT vs. ECOBANK GHANA 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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