Correlation Between SASINI and ABSA BANK
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By analyzing existing cross correlation between SASINI LTD and ABSA BANK OF, you can compare the effects of market volatilities on SASINI and ABSA BANK 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 ABSA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASINI and ABSA BANK.
Diversification Opportunities for SASINI and ABSA BANK
Pay attention - limited upside
The 3 months correlation between SASINI and ABSA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding SASINI LTD and ABSA BANK OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABSA BANK 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 ABSA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABSA BANK has no effect on the direction of SASINI i.e., SASINI and ABSA BANK go up and down completely randomly.
Pair Corralation between SASINI and ABSA BANK
Assuming the 90 days trading horizon SASINI LTD is expected to under-perform the ABSA BANK. In addition to that, SASINI is 1.73 times more volatile than ABSA BANK OF. It trades about -0.2 of its total potential returns per unit of risk. ABSA BANK OF is currently generating about 0.01 per unit of volatility. If you would invest 1,515 in ABSA BANK OF on September 12, 2024 and sell it today you would earn a total of 0.00 from holding ABSA BANK OF or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SASINI LTD vs. ABSA BANK OF
Performance |
| Timeline |
| SASINI LTD |
| ABSA BANK |
SASINI and ABSA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASINI and ABSA BANK
The main advantage of trading using opposite SASINI and ABSA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASINI position performs unexpectedly, ABSA BANK 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 ABSA BANK will offset losses from the drop in ABSA BANK's long position.| SASINI vs. HOMEBOYZ ENTERTAINMENT PLC | SASINI vs. CENTUM INVESTMENT PANY | SASINI vs. EAST AFRICAN BREWERIES | SASINI vs. CIC INSURANCE GROUP |
| ABSA BANK vs. CENTUM INVESTMENT PANY | ABSA BANK vs. CIC INSURANCE GROUP | ABSA BANK vs. CO OPERATIVE BANK OF | ABSA BANK vs. DIAMOND TRUST BANK |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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