Correlation Between NATION MEDIA and YETU MICROFINANCE
Can any of the company-specific risk be diversified away by investing in both NATION MEDIA and YETU MICROFINANCE 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 NATION MEDIA and YETU MICROFINANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NATION MEDIA GROUP and YETU MICROFINANCE PLC, you can compare the effects of market volatilities on NATION MEDIA and YETU MICROFINANCE 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 NATION MEDIA with a short position of YETU MICROFINANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NATION MEDIA and YETU MICROFINANCE.
Diversification Opportunities for NATION MEDIA and YETU MICROFINANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NATION and YETU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NATION MEDIA GROUP and YETU MICROFINANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YETU MICROFINANCE PLC and NATION MEDIA 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 NATION MEDIA GROUP are associated (or correlated) with YETU MICROFINANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YETU MICROFINANCE PLC has no effect on the direction of NATION MEDIA i.e., NATION MEDIA and YETU MICROFINANCE go up and down completely randomly.
Pair Corralation between NATION MEDIA and YETU MICROFINANCE
If you would invest 28,000 in NATION MEDIA GROUP on October 24, 2024 and sell it today you would lose (2,500) from holding NATION MEDIA GROUP or give up 8.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NATION MEDIA GROUP vs. YETU MICROFINANCE PLC
Performance |
| Timeline |
| NATION MEDIA GROUP |
| YETU MICROFINANCE PLC |
NATION MEDIA and YETU MICROFINANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NATION MEDIA and YETU MICROFINANCE
The main advantage of trading using opposite NATION MEDIA and YETU MICROFINANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NATION MEDIA position performs unexpectedly, YETU MICROFINANCE 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 YETU MICROFINANCE will offset losses from the drop in YETU MICROFINANCE's long position.| NATION MEDIA vs. MKOMBOZI MERCIAL BANK | NATION MEDIA vs. NATIONAL INVESTMENT PANY | NATION MEDIA vs. EAST AFRICAN BREWERIES | NATION MEDIA vs. JATU PLC |
| YETU MICROFINANCE vs. NATION MEDIA GROUP | YETU MICROFINANCE vs. MKOMBOZI MERCIAL BANK | YETU MICROFINANCE vs. NATIONAL INVESTMENT PANY | YETU MICROFINANCE vs. EAST AFRICAN BREWERIES |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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