Correlation Between MUCOBA BANK and EAST AFRICAN
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By analyzing existing cross correlation between MUCOBA BANK PLC and EAST AFRICAN BREWERIES, you can compare the effects of market volatilities on MUCOBA BANK and EAST AFRICAN 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 MUCOBA BANK with a short position of EAST AFRICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of MUCOBA BANK and EAST AFRICAN.
Diversification Opportunities for MUCOBA BANK and EAST AFRICAN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MUCOBA and EAST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MUCOBA BANK PLC and EAST AFRICAN BREWERIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAST AFRICAN BREWERIES and MUCOBA BANK 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 MUCOBA BANK PLC are associated (or correlated) with EAST AFRICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAST AFRICAN BREWERIES has no effect on the direction of MUCOBA BANK i.e., MUCOBA BANK and EAST AFRICAN go up and down completely randomly.
Pair Corralation between MUCOBA BANK and EAST AFRICAN
If you would invest 323,000 in EAST AFRICAN BREWERIES on October 25, 2024 and sell it today you would earn a total of 30,000 from holding EAST AFRICAN BREWERIES or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MUCOBA BANK PLC vs. EAST AFRICAN BREWERIES
Performance |
| Timeline |
| MUCOBA BANK PLC |
| EAST AFRICAN BREWERIES |
MUCOBA BANK and EAST AFRICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MUCOBA BANK and EAST AFRICAN
The main advantage of trading using opposite MUCOBA BANK and EAST AFRICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MUCOBA BANK position performs unexpectedly, EAST AFRICAN 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 EAST AFRICAN will offset losses from the drop in EAST AFRICAN's long position.| MUCOBA BANK vs. YETU MICROFINANCE PLC | MUCOBA BANK vs. TANZANIA PORTLAND CEMENT | MUCOBA BANK vs. TOL GASES LTD | MUCOBA BANK vs. EAST AFRICAN BREWERIES |
| EAST AFRICAN vs. YETU MICROFINANCE PLC | EAST AFRICAN vs. MUCOBA BANK PLC | EAST AFRICAN vs. TANZANIA PORTLAND CEMENT | EAST AFRICAN vs. TOL GASES LTD |
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