Correlation Between MULTI TREX and AFRICAN ALLIANCE
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By analyzing existing cross correlation between MULTI TREX INTEGRATED FOODS and AFRICAN ALLIANCE INSURANCE, you can compare the effects of market volatilities on MULTI TREX and AFRICAN ALLIANCE 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 MULTI TREX with a short position of AFRICAN ALLIANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MULTI TREX and AFRICAN ALLIANCE.
Diversification Opportunities for MULTI TREX and AFRICAN ALLIANCE
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between MULTI and AFRICAN is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding MULTI TREX INTEGRATED FOODS and AFRICAN ALLIANCE INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFRICAN ALLIANCE INS and MULTI TREX 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 MULTI TREX INTEGRATED FOODS are associated (or correlated) with AFRICAN ALLIANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFRICAN ALLIANCE INS has no effect on the direction of MULTI TREX i.e., MULTI TREX and AFRICAN ALLIANCE go up and down completely randomly.
Pair Corralation between MULTI TREX and AFRICAN ALLIANCE
If you would invest 20.00 in AFRICAN ALLIANCE INSURANCE on October 26, 2024 and sell it today you would earn a total of 0.00 from holding AFRICAN ALLIANCE INSURANCE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MULTI TREX INTEGRATED FOODS vs. AFRICAN ALLIANCE INSURANCE
Performance |
| Timeline |
| MULTI TREX INTEGRATED |
| AFRICAN ALLIANCE INS |
MULTI TREX and AFRICAN ALLIANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MULTI TREX and AFRICAN ALLIANCE
The main advantage of trading using opposite MULTI TREX and AFRICAN ALLIANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MULTI TREX position performs unexpectedly, AFRICAN ALLIANCE 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 AFRICAN ALLIANCE will offset losses from the drop in AFRICAN ALLIANCE's long position.| MULTI TREX vs. ABC TRANSPORT PLC | MULTI TREX vs. AFRICAN ALLIANCE INSURANCE | MULTI TREX vs. STACO INSURANCE PLC | MULTI TREX vs. VETIVA BANKING ETF |
| AFRICAN ALLIANCE vs. STACO INSURANCE PLC | AFRICAN ALLIANCE vs. MULTI TREX INTEGRATED FOODS | AFRICAN ALLIANCE vs. ABC TRANSPORT PLC | AFRICAN ALLIANCE vs. JAIZ BANK PLC |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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