Correlation Between SASINI and KENYA RE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SASINI and KENYA RE 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 SASINI and KENYA RE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SASINI LTD and KENYA RE INSURANCE PORATION, you can compare the effects of market volatilities on SASINI and KENYA RE 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 KENYA RE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASINI and KENYA RE.

Diversification Opportunities for SASINI and KENYA RE

0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between SASINI and KENYA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SASINI LTD and KENYA RE INSURANCE PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENYA RE INSURANCE 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 KENYA RE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENYA RE INSURANCE has no effect on the direction of SASINI i.e., SASINI and KENYA RE go up and down completely randomly.

Pair Corralation between SASINI and KENYA RE

Assuming the 90 days trading horizon SASINI LTD is expected to under-perform the KENYA RE. But the stock apears to be less risky and, when comparing its historical volatility, SASINI LTD is 1.01 times less risky than KENYA RE. The stock trades about -0.11 of its potential returns per unit of risk. The KENYA RE INSURANCE PORATION is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  112.00  in KENYA RE INSURANCE PORATION on September 4, 2024 and sell it today you would lose (1.00) from holding KENYA RE INSURANCE PORATION or give up 0.89% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SASINI LTD  vs.  KENYA RE INSURANCE PORATION

 Performance 
       Timeline  
SASINI LTD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SASINI LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
KENYA RE INSURANCE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days KENYA RE INSURANCE PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, KENYA RE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SASINI and KENYA RE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SASINI and KENYA RE

The main advantage of trading using opposite SASINI and KENYA RE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASINI position performs unexpectedly, KENYA RE 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 KENYA RE will offset losses from the drop in KENYA RE's long position.
SASINI vs. EQUITY GROUP HOLDINGS
SASINI vs. ABSA BANK OF
SASINI vs. BRITISH AMERICAN TOBACCO
SASINI vs. CO OPERATIVE BANK OF
The idea behind SASINI LTD and KENYA RE INSURANCE PORATION pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
KENYA RE vs. EQUITY GROUP HOLDINGS
KENYA RE vs. ABSA BANK OF
KENYA RE vs. BRITISH AMERICAN TOBACCO
KENYA RE vs. CO OPERATIVE 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY