Correlation Between SASINI and BRITISH AMERICAN
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By analyzing existing cross correlation between SASINI LTD and BRITISH AMERICAN TOBACCO, you can compare the effects of market volatilities on SASINI and BRITISH AMERICAN 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 SASINI with a short position of BRITISH AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASINI and BRITISH AMERICAN.
Diversification Opportunities for SASINI and BRITISH AMERICAN
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SASINI and BRITISH is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding SASINI LTD and BRITISH AMERICAN TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRITISH AMERICAN TOBACCO and SASINI 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 SASINI LTD are associated (or correlated) with BRITISH AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRITISH AMERICAN TOBACCO has no effect on the direction of SASINI i.e., SASINI and BRITISH AMERICAN go up and down completely randomly.
Pair Corralation between SASINI and BRITISH AMERICAN
Assuming the 90 days trading horizon SASINI LTD is expected to under-perform the BRITISH AMERICAN. In addition to that, SASINI is 4.37 times more volatile than BRITISH AMERICAN TOBACCO. It trades about -0.2 of its total potential returns per unit of risk. BRITISH AMERICAN TOBACCO is currently generating about 0.0 per unit of volatility. If you would invest 35,000 in BRITISH AMERICAN TOBACCO on September 12, 2024 and sell it today you would earn a total of 0.00 from holding BRITISH AMERICAN TOBACCO or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SASINI LTD vs. BRITISH AMERICAN TOBACCO
Performance |
| Timeline |
| SASINI LTD |
| BRITISH AMERICAN TOBACCO |
SASINI and BRITISH AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASINI and BRITISH AMERICAN
The main advantage of trading using opposite SASINI and BRITISH AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASINI position performs unexpectedly, BRITISH AMERICAN 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 BRITISH AMERICAN will offset losses from the drop in BRITISH AMERICAN's long position.| SASINI vs. HOMEBOYZ ENTERTAINMENT PLC | SASINI vs. CENTUM INVESTMENT PANY | SASINI vs. EAST AFRICAN BREWERIES | SASINI vs. CIC INSURANCE GROUP |
| BRITISH AMERICAN vs. NCBA GROUP PLC | BRITISH AMERICAN vs. EAST AFRICAN BREWERIES | BRITISH AMERICAN vs. STANDARD CHARTERED BANK | BRITISH AMERICAN vs. ABSA BANK OF |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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