Correlation Between SASINI and EQUITY GROUP
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By analyzing existing cross correlation between SASINI LTD and EQUITY GROUP HOLDINGS, you can compare the effects of market volatilities on SASINI and EQUITY GROUP 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 EQUITY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASINI and EQUITY GROUP.
Diversification Opportunities for SASINI and EQUITY GROUP
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SASINI and EQUITY is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SASINI LTD and EQUITY GROUP HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUITY GROUP HOLDINGS 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 EQUITY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUITY GROUP HOLDINGS has no effect on the direction of SASINI i.e., SASINI and EQUITY GROUP go up and down completely randomly.
Pair Corralation between SASINI and EQUITY GROUP
Assuming the 90 days trading horizon SASINI LTD is expected to under-perform the EQUITY GROUP. In addition to that, SASINI is 1.13 times more volatile than EQUITY GROUP HOLDINGS. It trades about -0.2 of its total potential returns per unit of risk. EQUITY GROUP HOLDINGS is currently generating about 0.0 per unit of volatility. If you would invest 4,810 in EQUITY GROUP HOLDINGS on September 12, 2024 and sell it today you would lose (10.00) from holding EQUITY GROUP HOLDINGS or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SASINI LTD vs. EQUITY GROUP HOLDINGS
Performance |
| Timeline |
| SASINI LTD |
| EQUITY GROUP HOLDINGS |
SASINI and EQUITY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASINI and EQUITY GROUP
The main advantage of trading using opposite SASINI and EQUITY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASINI position performs unexpectedly, EQUITY GROUP 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 EQUITY GROUP will offset losses from the drop in EQUITY GROUP's long position.| SASINI vs. HOMEBOYZ ENTERTAINMENT PLC | SASINI vs. CENTUM INVESTMENT PANY | SASINI vs. EAST AFRICAN BREWERIES | SASINI vs. CIC INSURANCE GROUP |
| EQUITY GROUP vs. CARBACID INVESTMENTS LTD | EQUITY GROUP vs. UCHUMI SUPERMARKET PLC | EQUITY GROUP vs. EAST AFRICAN BREWERIES | EQUITY GROUP vs. Kenya Reinsurance |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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