Correlation Between SAMBA FOODS and MTN GHANA
Can any of the company-specific risk be diversified away by investing in both SAMBA FOODS and MTN GHANA 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 SAMBA FOODS and MTN GHANA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAMBA FOODS LIMITED and MTN GHANA LTD, you can compare the effects of market volatilities on SAMBA FOODS and MTN GHANA 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 SAMBA FOODS with a short position of MTN GHANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMBA FOODS and MTN GHANA.
Diversification Opportunities for SAMBA FOODS and MTN GHANA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAMBA and MTN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAMBA FOODS LIMITED and MTN GHANA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTN GHANA LTD and SAMBA FOODS 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 SAMBA FOODS LIMITED are associated (or correlated) with MTN GHANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTN GHANA LTD has no effect on the direction of SAMBA FOODS i.e., SAMBA FOODS and MTN GHANA go up and down completely randomly.
Pair Corralation between SAMBA FOODS and MTN GHANA
If you would invest 219.00 in MTN GHANA LTD on August 31, 2024 and sell it today you would earn a total of 18.00 from holding MTN GHANA LTD or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMBA FOODS LIMITED vs. MTN GHANA LTD
Performance |
| Timeline |
| SAMBA FOODS LIMITED |
| MTN GHANA LTD |
SAMBA FOODS and MTN GHANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMBA FOODS and MTN GHANA
The main advantage of trading using opposite SAMBA FOODS and MTN GHANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMBA FOODS position performs unexpectedly, MTN GHANA 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 MTN GHANA will offset losses from the drop in MTN GHANA's long position.| SAMBA FOODS vs. GUINNESS GHANA BREWERIES | SAMBA FOODS vs. SIC INSURANCE ANY | SAMBA FOODS vs. AGRICULTURAL DEVELOPMENT BANK | SAMBA FOODS vs. STANDARD CHARTERED BANK |
| MTN GHANA vs. ACCESS BANK GHANA | MTN GHANA vs. DIGICUT ADVERTISING PRODUCTION | MTN GHANA vs. REPUBLIC BANK LIMITED | MTN GHANA vs. SIC INSURANCE ANY |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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