Correlation Between Safari Investments and Clicks
Can any of the company-specific risk be diversified away by investing in both Safari Investments and Clicks 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 Safari Investments and Clicks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safari Investments RSA and Clicks, you can compare the effects of market volatilities on Safari Investments and Clicks 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 Safari Investments with a short position of Clicks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safari Investments and Clicks.
Diversification Opportunities for Safari Investments and Clicks
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safari and Clicks is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Safari Investments RSA and Clicks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clicks and Safari Investments 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 Safari Investments RSA are associated (or correlated) with Clicks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clicks has no effect on the direction of Safari Investments i.e., Safari Investments and Clicks go up and down completely randomly.
Pair Corralation between Safari Investments and Clicks
Assuming the 90 days trading horizon Safari Investments RSA is expected to generate 3.45 times more return on investment than Clicks. However, Safari Investments is 3.45 times more volatile than Clicks. It trades about 0.01 of its potential returns per unit of risk. Clicks is currently generating about -0.13 per unit of risk. If you would invest 67,500 in Safari Investments RSA on October 22, 2024 and sell it today you would lose (100.00) from holding Safari Investments RSA or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safari Investments RSA vs. Clicks
Performance |
| Timeline |
| Safari Investments RSA |
| Clicks |
Safari Investments and Clicks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safari Investments and Clicks
The main advantage of trading using opposite Safari Investments and Clicks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safari Investments position performs unexpectedly, Clicks 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 Clicks will offset losses from the drop in Clicks' long position.| Safari Investments vs. HomeChoice Investments | Safari Investments vs. City Lodge Hotels | Safari Investments vs. Capitec Bank Holdings | Safari Investments vs. Hosken Consolidated Investments |
| Clicks vs. CA Sales Holdings | Clicks vs. Astoria Investments | Clicks vs. Blue Label Telecoms | Clicks vs. Reinet Investments SCA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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