Correlation Between ABSA NEW and KENYA ORCHARDS
Specify exactly 2 symbols:
By analyzing existing cross correlation between ABSA NEW GOLD and KENYA ORCHARDS LTD, you can compare the effects of market volatilities on ABSA NEW and KENYA ORCHARDS 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 ABSA NEW with a short position of KENYA ORCHARDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABSA NEW and KENYA ORCHARDS.
Diversification Opportunities for ABSA NEW and KENYA ORCHARDS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ABSA and KENYA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ABSA NEW GOLD and KENYA ORCHARDS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENYA ORCHARDS LTD and ABSA NEW 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 ABSA NEW GOLD are associated (or correlated) with KENYA ORCHARDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENYA ORCHARDS LTD has no effect on the direction of ABSA NEW i.e., ABSA NEW and KENYA ORCHARDS go up and down completely randomly.
Pair Corralation between ABSA NEW and KENYA ORCHARDS
Assuming the 90 days trading horizon ABSA NEW is expected to generate 14.45 times less return on investment than KENYA ORCHARDS. But when comparing it to its historical volatility, ABSA NEW GOLD is 4.99 times less risky than KENYA ORCHARDS. It trades about 0.17 of its potential returns per unit of risk. KENYA ORCHARDS LTD is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 1,950 in KENYA ORCHARDS LTD on September 4, 2024 and sell it today you would earn a total of 5,050 from holding KENYA ORCHARDS LTD or generate 258.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABSA NEW GOLD vs. KENYA ORCHARDS LTD
Performance |
| Timeline |
| ABSA NEW GOLD |
| KENYA ORCHARDS LTD |
ABSA NEW and KENYA ORCHARDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABSA NEW and KENYA ORCHARDS
The main advantage of trading using opposite ABSA NEW and KENYA ORCHARDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABSA NEW position performs unexpectedly, KENYA ORCHARDS 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 KENYA ORCHARDS will offset losses from the drop in KENYA ORCHARDS's long position.| ABSA NEW vs. EQUITY GROUP HOLDINGS | ABSA NEW vs. LONGHORN PUBLISHERS LTD | ABSA NEW vs. SAFARICOM PLC | ABSA NEW vs. ABSA BANK OF |
| KENYA ORCHARDS vs. EQUITY GROUP HOLDINGS | KENYA ORCHARDS vs. ABSA BANK OF | KENYA ORCHARDS vs. BRITISH AMERICAN TOBACCO | KENYA ORCHARDS vs. CO OPERATIVE BANK OF |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |