Correlation Between SECURE ELECTRONIC and CHAMPION BREWERIES
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By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and CHAMPION BREWERIES PLC, you can compare the effects of market volatilities on SECURE ELECTRONIC and CHAMPION BREWERIES 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 SECURE ELECTRONIC with a short position of CHAMPION BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and CHAMPION BREWERIES.
Diversification Opportunities for SECURE ELECTRONIC and CHAMPION BREWERIES
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SECURE and CHAMPION is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY and CHAMPION BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAMPION BREWERIES PLC and SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY are associated (or correlated) with CHAMPION BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAMPION BREWERIES PLC has no effect on the direction of SECURE ELECTRONIC i.e., SECURE ELECTRONIC and CHAMPION BREWERIES go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and CHAMPION BREWERIES
Assuming the 90 days trading horizon SECURE ELECTRONIC TECHNOLOGY is expected to generate 1.21 times more return on investment than CHAMPION BREWERIES. However, SECURE ELECTRONIC is 1.21 times more volatile than CHAMPION BREWERIES PLC. It trades about 0.07 of its potential returns per unit of risk. CHAMPION BREWERIES PLC is currently generating about 0.02 per unit of risk. If you would invest 24.00 in SECURE ELECTRONIC TECHNOLOGY on December 9, 2024 and sell it today you would earn a total of 37.00 from holding SECURE ELECTRONIC TECHNOLOGY or generate 154.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.39% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. CHAMPION BREWERIES PLC
Performance |
| Timeline |
| SECURE ELECTRONIC |
| CHAMPION BREWERIES PLC |
SECURE ELECTRONIC and CHAMPION BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and CHAMPION BREWERIES
The main advantage of trading using opposite SECURE ELECTRONIC and CHAMPION BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC position performs unexpectedly, CHAMPION BREWERIES 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 CHAMPION BREWERIES will offset losses from the drop in CHAMPION BREWERIES's long position.| SECURE ELECTRONIC vs. FIDSON HEALTHCARE PLC | SECURE ELECTRONIC vs. MULTI TREX INTEGRATED FOODS | SECURE ELECTRONIC vs. AXAMANSARD INSURANCE PLC | SECURE ELECTRONIC vs. AFROMEDIA PLC |
| CHAMPION BREWERIES vs. NEM INSURANCE PLC | CHAMPION BREWERIES vs. JAIZ BANK PLC | CHAMPION BREWERIES vs. ASO SAVINGS AND | CHAMPION BREWERIES vs. GOLDEN GUINEA 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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