Correlation Between NATIONAL MICROFINANCE and MAENDELEO BANK
Can any of the company-specific risk be diversified away by investing in both NATIONAL MICROFINANCE and MAENDELEO BANK 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 NATIONAL MICROFINANCE and MAENDELEO BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NATIONAL MICROFINANCE BANK and MAENDELEO BANK PLC, you can compare the effects of market volatilities on NATIONAL MICROFINANCE and MAENDELEO BANK 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 NATIONAL MICROFINANCE with a short position of MAENDELEO BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of NATIONAL MICROFINANCE and MAENDELEO BANK.
Diversification Opportunities for NATIONAL MICROFINANCE and MAENDELEO BANK
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between NATIONAL and MAENDELEO is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding NATIONAL MICROFINANCE BANK and MAENDELEO BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAENDELEO BANK PLC and NATIONAL MICROFINANCE 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 NATIONAL MICROFINANCE BANK are associated (or correlated) with MAENDELEO BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAENDELEO BANK PLC has no effect on the direction of NATIONAL MICROFINANCE i.e., NATIONAL MICROFINANCE and MAENDELEO BANK go up and down completely randomly.
Pair Corralation between NATIONAL MICROFINANCE and MAENDELEO BANK
If you would invest 535,000 in NATIONAL MICROFINANCE BANK on October 25, 2024 and sell it today you would earn a total of 25,000 from holding NATIONAL MICROFINANCE BANK or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
NATIONAL MICROFINANCE BANK vs. MAENDELEO BANK PLC
Performance |
| Timeline |
| NATIONAL MICROFINANCE |
| MAENDELEO BANK PLC |
NATIONAL MICROFINANCE and MAENDELEO BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NATIONAL MICROFINANCE and MAENDELEO BANK
The main advantage of trading using opposite NATIONAL MICROFINANCE and MAENDELEO BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NATIONAL MICROFINANCE position performs unexpectedly, MAENDELEO BANK 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 MAENDELEO BANK will offset losses from the drop in MAENDELEO BANK's long position.| NATIONAL MICROFINANCE vs. YETU MICROFINANCE PLC | NATIONAL MICROFINANCE vs. MUCOBA BANK PLC | NATIONAL MICROFINANCE vs. TANZANIA PORTLAND CEMENT | NATIONAL MICROFINANCE vs. TOL GASES LTD |
| MAENDELEO BANK vs. YETU MICROFINANCE PLC | MAENDELEO BANK vs. MUCOBA BANK PLC | MAENDELEO BANK vs. TANZANIA PORTLAND CEMENT | MAENDELEO BANK vs. TOL GASES LTD |
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.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance |